Ayaan Hirsi Ali Islam’s Jihad Against Gays BUSINESS & TECH | B1 OPINION | A15 DJIA 17732.48 g 132.86 0.7% NASDAQ 4848.44 g 0.9% STOXX 600 326.80 g 1.8% 10-YR TREAS À 7/32 , yield 1.616% HHHH $3.00 WSJ.com TUESDAY, JUNE 14, 2016 ~ VOL CCLXVII NO 138 * * * * * OIL $48.88 g $0.19 GOLD $1,284.40 À $11.00 What’s News Business & Finance M icrosoft is buying LinkedIn for $26.2 billion, its biggest deal ever, as CEO Nadella seeks to revitalize the company A1, B1 Libya’s sovereign-wealth fund alleged in court that Goldman took advantage of its lack of sophistication to draw it into losing trades C1 U.S firms that cut their tax bills after moving offshore, including Medtronic and Aon, still enjoy perks from the government B1 The Supreme Court made it easier for patent holders to win more financial damages from copycats B1 PwC is in talks with regulators to resolve a dispute on whether the firm is too close to some mutual-fund clients C1 Apple unveiled changes to its operating systems and opened its services to outside developers B4 World-Wide The suspect in the Orlando massacre is an example of a threat that has vexed the FBI: terrorists living in the U.S whose self-radicalization is hard to spot The agency defended its handling of two previous probes involving the man A1, A6-8 Trump suggested that Obama may be sympathetic to radical Islamists that he said inspired the gunman He also attacked the president and Clinton for what he said are lax immigration laws A1 Clinton denounced “inflammatory anti-Muslim rhetoric” and pushed for an assault-weapon ban A4 The Supreme Court struck down Puerto Rico’s effort to restructure its public utility debts A2 EgyptAir investigators’ findings suggest that the plane wasn’t brought down by an abrupt blast A9 NATO’s head said military spending by Europe and Canada is set to rise 1.5%, or $3 billion, this year A11 North Korean hackers stole wing designs for a U.S jet fighter and photos of spyplane parts, Seoul said A10 Uganda plans to withdraw troops involved in operations against the Lord’s Resistance Army rebels A9 Shanghai police blamed an airport blast on a worker with gambling debts who had warned of suicide A10 CONTENTS Business News B2-3,6 CFO Journal B7 Crossword B7 Election 2016 A4 Global Finance C3 Heard on Street C8 In the Markets C4 Opinion A13-15 Sports D5 Terror in Orlando A6-8 U.S News A2-3 Weather B7 World News A9-11 > s Copyright 2016 Dow Jones & Company All Rights Reserved Flags at the Washington Monument were at half staff on Monday to honor those killed in the Orlando, Fla., shootings Gunman Dropped Hints Of Terror Attack to Come The threat that has consumed the agency: self-radicalization that is hard to identify BY DEVLIN BARRETT AND DAN FROSCH An aviation panel reached a preliminary accord on proposed airlinecybersecurity standards B3 YEN 106.26 BY JAY GREENE The gunman authorities say massacred 49 people at an Orlando nightclub had proclaimed he wanted to be a martyr, trav- Trump Goes On Offensive, Links Obama To Extremists BY BETH REINHARD AND REID J EPSTEIN GOFFSTOWN, N.H.—Donald Trump suggested Monday that President Barack Obama may be sympathetic to radical Islamists he said inspired the gunman in this weekend’s Orlando, Fla., nightclub attack, alleging in a television interview the president “doesn’t get it or he gets it better than anybody understands.” In an address in New Hampshire Monday afternoon, Mr Trump used a broad brush to attack both the president and presumptive Democratic presidential nominee Hillary Clinton for what he claims are lax immigration laws that contributed to the Florida attack that killed 49 people “The bottom line is that the Please see TRUMP page A4 Clinton urges ban on sales of certain guns A4 eled to Saudi Arabia and alarmed co-workers with claims of links to extremists—troubling hints of a homegrown terrorist but not enough to lead the Federal Bureau of Investigation to conclude he was a clear threat FBI Director James Comey, disclosing new details of Omar Mateen’s background Monday, said Mr Mateen took trips to Saudi Arabia in 2011 and the following year, though Saudi and U.S investigations found noth- The growing possibility that the U.K might leave the European Union shook markets globally on Monday, reflecting broad concern that next week’s referendum could slow down the world’s economy Polls suggest that momentum is growing for a vote on June 23 for Britain to leave the EU, spurring concerns about a prolonged stretch of uncertainty that could damage economic growth and trigger losses in financial markets Stocks slumped, Japan’s yen ized, he said, at least in part on the internet and had no apparent interactions with overseas terrorist groups, links that can alert law enforcement to radicalization Mr Comey defended the FBI’s handling of two previous probes involving the 29-yearold Orlando-nightclub terror suspect, saying there are no indications agents missed clues that could have prevented the Please see FBI page A7 Authorities Weigh Deadly Risks in Hostage Dilemma ORLANDO, Fla.—Police broke down a fence that enclosed the patio of Pulse around 2:15 a.m Sunday as Ivory McNeal slipped from his hiding place behind the potted plants “Please don’t shoot!” he By Arian CampoFlores, Cameron McWhirter and Laura Stevens said Minutes earlier, a man identified by authorities as Omar Mateen had exchanged gunfire with the uniformed police officer stationed at the club to gain entrance “All the music stopped immediately,” said Mr McNeal, who was standing near the main bar “The gunshots just kept going, kept going…people starting to fall on the ground, people running.” More police arrived and traded shots with Mr Mateen, forcing him to halt his deadly rampage and retreat into one of the nightclub’s bathrooms As ‘Brexit’ Gains Favor, Global Markets Swoon BY RIVA GOLD ing suspicious Mr Mateen is an example of precisely the threat that has vexed the agency in recent years: terrorists living in the U.S whose self-radicalization is hard to spot Despite the actions that led the FBI to scrutinize Mr Mateen, investigators found nothing that compelled them to act “This is exactly what we’ve been talking about,’’ said Mr Comey Mr Mateen was radical- ‘When everyone fell to the floor, I lost him’ Cory Richards, whose boyfriend, Enrique Rios Jr., was killed in the attack TERROR IN ORLANDO PAGES A6-8 There he held four or five hostages, Orlando Police Chief John Mina said Another 15 to 20 people were hiding in another bathroom By then, dozens of dead and injured covered the floor of the gay nightclub In the hours that followed, authorities tried negotiating with the gunman, who threatened the hostages and hinted of carrying explosives They had to weigh the risk to officers and captives in a forced entry against the needs of the injured and the risk of giving the attacker more time to kill “If you have a case where a person is ready to die, wants to die, then it makes an enormous challenge for negotiations to be effective,” said Gary Noesner, the former chief negotiator for the Federal Bureau of Investigation, now retired Dozens of clubgoers, including many injured, were brought to safety while the gunman was holed up in the bathroom, Mr Mina said That was around the time Mr Mateen made his 911 calls to declare his allegiance to Islamic State Mr McNeal, 28 years old, said he got to Pulse around midnight with two friends, passing, as usual, an officer posted out front For the next Please see CLUB page A6 Apple Lets Outsiders In surged and bond yields tumbled to fresh lows in a broad flight to safety Monday’s biggest losses were in Asia, where major stock indexes dropped 3.2% in Shanghai and 3.5% in Japan In the U.S., the S&P 500 dropped 0.8% and the yield on the 10year U.S Treasury note slumped to 1.616%, its lowest since December 2012 The decline continued early Tuesday, with Japan’s Nikkei Please see BREXIT page A12 Vote on U.K exit from EU splits London elite C1 MICHAEL SHORT/BLOOMBERG NEWS Global stock markets slumped, the Japanese yen surged and bond yields slid on the possibility that the U.K might leave the EU A1 Private investment in China has slowed, a report said, contributing to a 3.2% drop in Shanghai shares A10 U.S stocks fell following steep declines in Europe and Asia The Dow shed 132.86 points to 17732.48 C4 EURO $1.1294 Microsoft Places a Big Bet on LinkedIn KEVIN LAMARQUE/REUTERS ANDREW LAMBERSON FOR THE WSJ Supermarkets Stretch Offerings UPDATES: Apple revealed changes to its four operating systems, and emphasized a new willingness to allow non-Apple developers to add features to its most widely used services, including Siri B4 Microsoft Corp snapped up LinkedIn Corp for $26.2 billion in the largest acquisition in its history, betting the professional social network can rev up the tech titan’s software offerings despite recent struggles by both companies The deal is Chief Executive Satya Nadella’s latest effort to revitalize Microsoft, which was viewed not long ago as left behind by shifts in technology Mr Nadella hopes the deal will open new horizons for Microsoft’s Office suite as well as LinkedIn, both of which have saturated their markets, and generally bolster Microsoft’s revenue and competitive position Mr Nadella said today’s work is split between tools workers use to get their jobs done, such as Microsoft’s Office programs, and professional networks that connect workers The deal, he said, aims to weave those two pieces together “It’s really the coming together of the professional cloud and the professional network,” Mr Nadella said in an interview on Monday For instance, connecting Office directly to LinkedIn could help attendees of meetings learn more about one another directly from invitations in their calendars Sales representatives using Microsoft’s Dynamics software for managing customer relationships could pick up useful tidbits of background on potential customers from LinkedIn data Microsoft also sees opportunities in Lynda.com, a channel for training videos that LinkedIn bought for $1.5 billion last year Microsoft will be able to offer Lynda’s videos inside its own software, such as Excel spreadsheets Mr Nadella also talked about giving its Cortana digital assistant access to data from LinkedIn As for LinkedIn, the deal offers hope to renew decelerating growth as well as an exit for Please see DEAL page A12 Deal aims to refresh LinkedIn’s profile B1 A Texas Town Goes Huge on Tiny Houses i i i Then backs off as eco-first builders propose yurts BY LUKAS I ALPERT SPUR, Texas—Nearly two years ago, this town of cotton farmers and cattle ranchers in the rolling plains of West Texas declared itself the tiny house capital of America The hope was to reverse a long population decline by luring devotees of the growing movement of eco-conscious, doit-yourself builders who like to live in very small houses Town officials thought their official proclamation and elimination of nearly all building restrictions would attract the kind of adorable abodes featured on television shows like HGTV’s “Tiny House Hunters.” Some newcomers had other ideas In the town of about 1,000 residents located 75 miles east of Lubbock, talk soon began to surface about plans to build yurts, straw dwellings and even underground dugouts resembling something out of Please see TINY page A12 THE WALL STREET JOURNAL A2 | Tuesday, June 14, 2016 U.S NEWS Court Blocks Puerto Rico Debt-Restructuring Move BY JESS BRAVIN ASTRONOMY Largest Planet With Suns Found JOE RAEDLE/GETTY IMAGES A k o yA S p e c i A l e d i t i o n x m m 18” c u lt u r e d p e A r l n e c k l A c e A n d m At c h i n g m m S t u d e A r r i n g S S e t i n 18 k w h i t e g o l d WASHINGTON—The Supreme Court on Monday struck down Puerto Rico’s effort to restructure its public utility debts, increasing pressure on Congress to finish work on pending legislation to help the U.S territory address its growing debt crisis The court’s 5-2 decision said Congress, in prior legislation on municipal bankruptcies, didn’t give Puerto Rico the ability to enact its own bankruptcy process The ruling eliminated the slim chance the territory could write its own bankruptcy plan, leaving Congress as the only plausible way to avoid a disorderly restructuring of Puerto Rico debt The island is about $70 billion in debt and has missed bond payments The U.S House passed a bipartisan bill last week to create a debt-restructuring process for the territory, which would be overseen by a sevenmember federal board No federal funds would be spent on the plan, which awaits action in the Senate President Barack Obama supports the bill A spokesman for the Puerto Rico government had no immediate comment “We are grateful for the Supreme Court’s careful consideration of the case, and are pleased that we now can put this litigation behind us,” said Matthew D McGill, who represents bondholders Franklin Resources Inc and Oppenheimer Holdings Inc as well as an investment adviser, Blue Mountain Capital Management LLC The Supreme Court struck down a law allowing Puerto Rico to restructure its public utility debts Above, a street in San Juan The bondholders hold approximately $1.56 billion in bonds issued by the Puerto Rico Electric Power Authority The case highlights the island’s unusual status within the U.S federal structure Congress excluded the territory from authorization it provided U.S municipalities to restructure their debts under chapter of the federal bankruptcy code Puerto Rico interpreted its omission as implicitly providing it with the authority to address the issue on its own, and the territorial legislature enacted a law allowing several public agencies and utilities to discharge most of their debts despite creditors’ objections Justice Clarence Thomas, writing for the majority, said Puerto Rico misread the bank- CORRECTIONS At least 1,191 people have been killed in Islamic Stateaffiliated or inspired attacks outside Syria and Iraq since the beginning of 2015 In some editions Monday, a chart accompanying the continuation of a Page One article about the Orlando shootings omitted attacks claimed by the group in Belgium on March 26, 2016, and Istanbul on March 19, 2016 It also incorrectly included an attack in Bamako, Mali A correct version of the chart can be seen at WSJ.com/Corrections Etihad Airways owns a 49% stake in Alitalia SpA, while a group of Italian shareholders has a 51% stake through the holding company CAI A Business & Tech article THE WALL STREET JOURNAL (USPS 664-880) (Eastern Edition ISSN 0099-9660) (Central Edition ISSN 1092-0935) (Western Edition ISSN 0193-2241) Editorial and publication headquarters: 1211 Avenue of the Americas, New York, N.Y 10036 Published daily except Sundays and general legal holidays Periodicals postage paid at New York, N.Y., and other mailing offices POSTMASTER: Send address changes to The Wall Street Journal, 200 Burnett Rd., Chicopee, MA 01020 All Advertising published in The Wall Street Journal is subject to the applicable rate card, copies of which are available from the Advertising Services Department, Dow Jones & Co Inc., 1155 Avenue of the Americas, New York, N.Y 10036 The Journal reserves the right not to accept an advertiser’s order Only publication of an advertisement shall constitute final acceptance of the advertiser’s order Letters to the Editor: Fax: 212-416-2891; email: wsj.ltrs@wsj.com NEED ASSISTANCE WITH YOUR SUBSCRIPTION? CONTACT CUSTOMER SUPPORT masterdynamic.com U.S Watch By web: customercenter.wsj.com By email: wsjsupport@wsj.com By phone: 1-800-JOURNAL (1-800-568-7625) Or by live chat at wsj.com/livechat ruptcy code, which he said denied Puerto Rico the power to authorize its local governments to take advantage of debt-relief provisions available to states “The plain text of the Bankruptcy Code begins and ends our analysis,” he wrote, joined by Chief Justice John Roberts and Justices Anthony Kennedy, Stephen Breyer and Elena Kagan Justices Sonia Sotomayor and Ruth Bader Ginsburg dissented, citing other code provisions “The government and people of Puerto Rico should not have to wait for possible congressional action to avert the consequences of unreliable electricity, transportation, and safe water,” Justice Sotomayor wrote in the dissent Justice Samuel Alito recused himself from the case Astronomers say they have discovered the largest planet to date that orbits two suns The newfound world, about the size of the planet Jupiter, is 3,700 light-years from Earth A light-year is nearly trillion miles It was detected by a team led by NASA and San Diego State University using the planet-hunting Kepler telescope The discovery was announced Monday during a meeting of the American Astronomical Society in San Diego Although the planet is in the habitable zone—where water that is essential to life can be liquid—it isn’t a good candidate to support life because it is so big, scientists said —Associated Press OBITUARY Creator of Beehive Hairdo Dies at 98 Margaret Vinci Heldt, who became a hairstyling celebrity after she created the beehive hairdo in 1960, has died at age 98 The beehive—a tall, conical hairstyle—became a phenomenon in the 1960s and evolved into a style worn for decades as Hollywood starlets walked red carpets Ms Heldt created it at the request of a magazine that published images of the style in February 1960 and named it for its resemblance to the shape of a traditional hive —Associated Press AMPLIFICATIONS Monday about changes at Alitalia incorrectly said Etihad is the controlling shareholder of the Italian carrier Walgreen Co has formally ended an alliance with Theranos Inc In some editions Monday, a Page One What’s News summary incorrectly said the drugstore operator had ended a reliance with Theranos The name of Jaybridge Robotics Inc was incorrectly given as Jaybird Robotics in a Business & Tech article Monday about the battle for autoindustry talent China Life Insurance Co previously invested in Uber Technologies Inc.’s global business A Business News article Monday about China Life investing in Didi Chuxing Technology Co incorrectly said the insurer had invested in Uber’s China affiliate, UberChina The first name of Calvin Printer, a spokesman for Dr Reddy’s Laboratories, was omitted in a Business Watch item Monday about the Indian drugmaker agreeing to buy eight drugs from Israel’s Teva Pharmaceutical Industries Ltd This summer will mark the 100th anniversary of mail boat service in Lake Geneva, Wis The caption of a photo accompanying a U.S News article Saturday about the mail boat’s couriers incorrectly said the image showed the 100th annual tryouts for those jobs Readers can alert The Wall Street Journal to any errors in news articles by emailing wsjcontact@wsj.com or by calling 888-410-2667 WELCOME TO OUR WORLD Tuesday, June 14, 2016 | A3 * * U.S NEWS ALS Patients, Defying Odds ©T&CO 2016 DESIGNS ©PALOMA PICASSO THE WALL STREET JOURNAL Researchers study those who seem to show improvement for clues and treatments BY AMY DOCKSER MARCUS JUST THE THING TO CELEBRATE DAD Introducing Paloma’s Groove™ KIM CHERRY; MICHAEL MCDUFF (RIGHT) Richard Bedlack has treated more than 2,000 patients with ALS, the neurological condition known as Lou Gehrig’s disease Almost without exception, his patients get worse over time and eventually die Now, Dr Bedlack, head of Duke University’s ALS clinic, is focusing on a different kind of patient: someone who seems to be getting better ALS, or amyotrophic lateral sclerosis, progressively robs people of the ability to move their muscles and is fatal, usually within two to five years But in a small number of cases—Dr Bedlack says he has verified 23 so far—patients report unexpectedly regaining lost motor functions for at least a year Some attribute their improvement to supplements or experimental therapies, but acknowledge they can’t be certain why they started to improve Dr Bedlack believes that studying these so-called “ALS reversals” and trying to determine what, if anything, separates these individuals from the overwhelming majority of others may lead to new understanding of the disease and, potentially, new therapies The effort to study people who seem to defy medical odds isn’t limited to ALS The Resilience Project, started in 2014, is examining genomes of healthy individuals, trying to find people who aren’t sick despite having gene mutations that should cause disease For over a decade, a research consortium has followed “elite controllers,” people infected with HIV who somehow naturally control the virus without anti-retroviral medications and don’t develop AIDS Studies of patients by the International HIV Controllers Consortium and other groups helped identify a genetic signature associated with controllers, and experimental therapies are being tested “At the beginning, HIV was this incredible black box,” says Bruce Walker, director of the Ragon Institute of MGH, MIT and Harvard, which operates the HIV study “The difficult thing is, how you turn other people into elite controllers?” Dr Bedlack says he would like to the same for ALS Earlier this year, researchers, including Dr Bedlack, published a paper in Neurology based on a database of more than 10,000 patients stripped of any identifiable information who are taking part in clinical trials for ALS treatments The researchers found a So-called ALS reversals include Michael McDuff, above, who couldn’t dress or feed himself in 2013 but now can swallow again and has gained weight, and Kim Cherry, below, whose function has dramatically improved since his low point in 2012 small subset—less than 1% of patients in the database—they consider ALS reversals, who had significant improvement and regained lost function for a year or more Even if the numbers of patients are small, “I think they are worth studying,” says Merit Cudkowicz, director of the ALS clinic at Massachusetts General Hospital in Boston and one of the authors of the Neurology paper Dr Bedlack says a number of theories may explain ALS reversals Perhaps, he says, these patients didn’t really have ALS but an unknown mimic syndrome They might have genetic traits that help resist the disease An environmental factor that helped drive the disease could be removed, he says, or an unusual treatment the patient tried worked To study the phenomenon, Dr Bedlack is running two programs For his Study of ALS Reversals, he is collecting verified cases of reversals When he hears of a case, Dr Bedlack gets in touch with the patient He asks to review medical records and speak to the doctor This summer he will start collecting blood samples of verified cases to be used for whole genome sequencing and testing for any unusual antibodies One participant, Kim Cherry of Boise, Idaho, was diagnosed with ALS in 2011 His low point was in 2012, but his function has since sharply improved The 68-year-old says he tried a variety of approaches, including treatment in a hyperbaric oxygen tank and a gluten-free diet He thinks his reversal may be due to a combination of factors “ALS is a puzzle,” says his wife, Kay Cherry In cases where an unusual treatment seems to be involved, Dr Bedlack’s second program—Replication of ALS Reversals—is trying to reproduce the reversal using the patient’s regimen The first such trial, based on Michael McDuff, a 64-year-old former machinist from Westport, Mass., has enrolled 16 patients and is expected to enroll 34 more Participants in the trial will report updates to PatientsLikeMe, a company that aggregates and analyzes health data Mr McDuff says he first noticed weakness in his arms in 2010 and was diagnosed with ALS By spring 2013, he couldn’t dress or feed himself At the suggestion of a friend, he started taking a supplement called lunasin—a protein claimed to have potential health benefits After three months, Mr McDuff and his wife noticed improvements Today, Mr McDuff can swallow again and has gained weight He is the first to say he isn’t cured But now, “I have a better quality of life,” he says Health Co-op Sues To Block Federal Fees BY STEPHANIE ARMOUR Maryland’s health cooperative filed a lawsuit Monday seeking to block the federal government from requiring it to pay more than $22 million in fees for a program designed to cover insurance company shortfalls The lawsuit by Evergreen Health Cooperative Inc is the latest twist in the saga of health insurance co-ops set up under the Affordable Care Act to compete against larger, established insurers The co-ops were supposed to help keep premiums down by injecting competition into the industry Instead, 13 of 23 startups that launched successfully have since collapsed, forcing more than 700,000 consumers to seek new insurance A number of co-op officials have said they were hurt by the federal program because of a formula it used to spread out risk, which they say hurts them while benefiting large, already established insurance companies The Maryland co-op, in its lawsuit filed in U.S District Court in Maryland, says the formula—known as “risk adjustment”—is arbitrary and unlawful The Centers for Medicare and Medicaid Services, which oversees the pro- gram, declined to comment Officials have previously said the formula doesn’t discriminate against small insurers The program is designed to spread risk by collecting money from companies with healthier populations and distributing it to those with older, sicker populations Co-ops have said the current formula is unfair because they have small market share and scant data on enrollees’ health status from prior years, so it may appear that their customers are healthier than they really are “We’re doing this because it will be a challenge to us We think it’s outrageous,” said Dr Peter Beilenson, chief executive of Evergreen Health, in an interview “It also impedes our ability to grow We need capital to grow.” CMS held a forum in March to hear from insurers, co-ops and others in the industry about their concerns with the formula The Obama administration plans to revise the riskadjustment formula, making some changes that would go into effect in 2017, with others proposed for 2018 The new formula could include consumers’ prescription-drug use as a source of data on their health status in the formula RALEIGH ATLANTA DENVER PALM BEACH NEW YORK AUSTIN ST ANDREWS SOUTHAMPTON petermillar.com 800 843 3269 | TIFFANY.COM SALVATORE FERRAGAMO FATHER’S DAY JUNE 19 Bomber jacket $1530 Polo $400 Pants $400 Briefcase $1600 Camo-soled drivers $495 Fifth Avenue and 50th Street 212.753.4000 FREE GROUND SHIPPING ONLINE AND IN STORES EVERY DAY EVERY ORDER A4 | Tuesday, June 14, 2016 P W L C 10 11 12 H T G K B F A M O I X X ** THE WALL STREET JOURNAL Political Consequences of Attack Run High CAPITAL JOURNAL GERALD F SEIB I n one sense, the cost of Islamist-inspired violence in America actually isn’t all that high In nearly 15 years since the 9/11 attacks, 95 Americans have been killed by jihadist attacks, according to one count, including those who died in an Orlando night club over the weekend By contrast, more than 35,000 died in fatal car accidents last year Yet any loss of human life is traumatic, of course The economic and psychological costs are high as well And the political consequences are astronomical Like traffic deaths, the costs of Islamist terror have become woven into American life Orlando will make the weaving just that much tighter, even though it isn’t clear, and probably never will be, how much of this tragedy was inspired by Islamist groups and how much by antigay hatred The difference this time is that, thanks to the unfolding presidential campaign, Americans will get to decide what kind of approach they want to confront this problem: the tough guy or the cool head Though it is difficult to quantify, there is little doubt that the undercurrent of concern about Islamist terror has helped contribute to the national mood of anxiety that forms the backdrop for this presidential campaign The broad theme that seems to run through the feelings of many Americans right now is loss of control—inability to control their economic fate, inability to control the level of fairness in society, inability to control the country’s borders, inability to control world affairs This is where an ongoing fear of terror attacks fits in Americans are smart enough to know the actual risk they face of being the victim of a terror attack inspired by Islamic State or other jihadist groups is small Yet the reminders that the risk is there are constant and growing Every trip through airport security, every pass through a checkpoint to go to a baseball game, every glimpse of an Terrorism, Through a Political Prism American voters see terrorism and national security as one of the top priorities for the federal government to address But Republicans far more than Democrats rank it a top issue Older voters more than younger ones also put a high priority on addressing national security What should the top priority for the federal government be? Job creation and economic growth All voters Democrats Independents Republicans White African-American Hispanic Ages 18–34 Ages 35–49 Ages 50–64 Ages 65 and over National security and terrorism The deficit and Health government care spending 26% 21% 16% 15% 35 11 11 24 19 26 12 13 20 33 21 24 23 18 13 39 19 12 20 26 18 11 17 26 15 18 18 31 17 18 11 26 28 13 15 22 26 14 13 Source: WSJ/NBC News telephone poll of 1,000 registered voters conducted May 15–19; full sample margin of error: +/- 3.1 pct pts THE WALL STREET JOURNAL armed officer at a public event where there previously was none is a signal of the threat Now, as a result of Orlando, it is likely that added security at the door of a night club will be added to the list The fears this stepped-up security generates are never far from people’s minds Last month, when The Wall Street Journal/NBC News poll asked Americans to rank the top priorities for the federal government, 26% listed job security and economic growth as the top priority, but terrorism and national security was just behind at 21% Those two concerns actu- ally are related, because there is an actual economic cost to both terrorism and fear of terrorism That cost includes economic activity slowed or interrupted by terror risks and the rising cost of security to prevent terror attacks Calculating the precise cost is an inexact science, but one organization, the Institute for Economics and Peace, has estimated that in 2014 the global economic costs of terrorism hit $52.9 billion That all leads to the political consequences, which the Orlando shooting figures to put into sharper relief as well The simple partisan impact of fears of jihadists is mixed When voters were asked in the April WSJ/NBC News survey which party would a better job of dealing with ISIS in Iraq and Syria, Republicans had a 19-point advantage: 43% said the GOP would the better job, while 24% said Democrats B ut the choice between the presidential contenders of those two parties is considerably more complex In that same survey, 37% gave likely Democratic presidential nominee Hillary Clinton good ratings for her ability to handle an international crisis, while just 20% gave presumptive GOP nomi- nee Donald Trump good ratings A whopping 64% gave Mr Trump poor ratings That’s a reflection that these two candidates, more than any other presidential contenders in the era of terrorism, present starkly different profiles on this subject Mr Trump offers no particular expertise on Islamic threats or their foreign roots, but offers a completely new attitude On Sunday, he blew past nuances, including exactly how strong the links to Islam were in the Orlando attack, and moved straight to the action phase: We’re not tough enough; we need to respond He takes the primal scream many Americans have bottled up and puts it on Twitter Mrs Clinton, by contrast, offers the cool head Americans have traditionally wanted in a commander in chief She offered empathy for the victims and the hatred gays feel, a reminder that the U.S needs “allies and partners” to win the long war against Islamic extremism, and, in her spokeswoman’s words, “a comprehensive plan to combat ISIS at home and abroad.” It’s a “comprehensive plan” candidate versus a “bomb the hell out of ISIS” one Elections are about choices, and this is definitely one BY JANET HOOK CLEVELAND—Democrat Hillary Clinton, in her first extended response to the massacre in Orlando, denounced “inflammatory anti-Muslim rhetoric” and pushed for stricter gun laws, including the reinstatement of a ban on the sort of assault weapons used by the Florida gunman “If the FBI is watching you for suspected terrorists links, you shouldn’t be able to just go buy a gun,” she said here in a reference to two prior antiterrorism investigations of Omar Mateen, the shooter who was killed Sunday by police Those probes were eventually closed without action taken Her remarks Monday offered a sharp contrast to the reaction of her likely Republican rival, Donald Trump He countered in Manchester, N.H., by blaming the weekend attack, in part, on lax immigration laws, and appeared to broaden his pledge to ban Muslims from entering the country by including immigrants from any country “with a proven history of terrorism against the U.S., Europe or our allies.” The dueling foreign-policy speeches, on a day when both candidates initially promised to avoid the typical campaign trail sniping, showed voters just how differently each candidate would respond to the kind of terror threat posed by the lone gunman who killed at least 49 people at a popular gay nightclub in Orlando over the weekend Mrs Clinton avoided the kind of harsh rhetoric that has defined the early back-andforth between the presumptive Democratic nominee and her likely GOP rival But she did take some implicit swipes at Mr Trump and his angry, partisan response to the Orlando shootings in a gay nightclub by a Muslim American who swore allegiance to ISIS Among other things, he has called on President Barack Obama to resign and Mrs Clinton to quit AARON JOSEFCZYK/REUTERS Clinton Urges Ban on Sales Of Certain Guns Democrat Hillary Clinton denounces ‘inflammatory anti-Muslim rhetoric’ while addressing the Orlando killings in Cleveland on Monday the presidential race Mrs Clinton denounced “inflammatory anti-Muslim rhetoric” and politics of division saying, “We are not a land of winners and losers.” She contrasted the current political climate with the bipartisan response in the days following the Sept 11, 2001, attacks, when she was a U.S senator from New York, while New York City’s mayor, the state’s governor and the U.S president were all Republicans “We did not attack each other; we worked together,” she said “It is time to get back to the spirit of those days.” Mrs Clinton promised that, as president, she would beef up counterterrorism measures and make a top priority of “identifying and stopping lone wolves”—domestic terrorists operating on their own, often with inspiration from ISIS She called for more resources for intelligence gathering and law enforcement at home, and working with allies to continue military attacks on ISIS abroad She angrily called on the governments of Saudi Arabia, Qatar and other U.S allies in the Middle East to stop allowing their citizens to finance extremists But her most impassioned— and well received—response was to make a link between stopping domestic terrorism and imposing new restrictions on guns She renewed her call to revive a federal ban on socalled assault weapons In his speech, Mr Trump attacked Mrs Clinton’s push to reinstate the long-lapsed ban Mrs Clinton spoke as the 2016 campaign has been SALE NEW YORK 625 Madison Avenue, 212.752.3131, madison.shop@canali.it 25 Broad Street, 212.842.8700, newyork.shop@canali.it B E V E R LY H I L L S 261 North Rodeo Drive, 310.270.4200, beverlyhills.shop@canali.it C O S TA M E S A The Penthouse at South Coast Plaza 714.662.1800, costamesa.shop@canali.it LAS VEGAS Grand Canal Shoppes at the Venetian, The Palazzo 702.862.4447, lasvegas.shop@canali.it The Forum Shops at Caesars 702.380.0882, lasvegas.forum.shop@canali.it MIAMI Bal Harbour Shops, 305.868.3456, balharbour.shop@canali.it Shops at Merrick Park, 305.446.1499, miami.shop@canali.it AT L A N TA The Shops Buckhead Atlanta, 404.846.0360, atlanta.shop@canali.it HOUSTON River Oaks District, 713.888.0809, houston.shop@canali.it DALLAS NorthPark Center, 214.890.9862, dallas.shop@canali.it WASHINGTON DC CityCenterDC, 202.545.6579, washington.shop@canali.it CANALI.COM Continued from Page One only reason the killer was in America in the first place was because we allowed his family to come here,” Mr Trump said during his a speech here, referring to the New York-born shooter, Omar Mateen, whose parents emigrated to the U.S from Afghanistan The presumptive Republican nominee’s remarks on Fox News earlier in the day mark the latest escalation in his yearslong campaign to paint Mr Obama as unqualified for office, either by birth or by virtue of his leadership Mr Trump spent much of Mr Obama’s first term in office alleging the president wasn’t a natural-born U.S citizen despite Mr Obama’s official Hawaiian birth certificate “Look, we’re led by a man that either is not tough, not smart, or he’s got something else in mind,” Mr Trump said on Fox News “And the something else in mind—you know, people can’t believe it People cannot, they cannot believe that President Obama is acting the way he acts and can’t even mention the words ‘radical Islamic terrorism.’ There’s something going on It’s inconceivable There’s something going on.” His remarks drew a rebuke from the White House Press secretary Josh Earnest said Mr Obama’s record on fighting Islamic State “speaks for itself” and “includes a lot of dead ter- TIMOTHY A CLARY/AGENCE FRANCE-PRESSE/GETTY IMAGES TRUMP GOP candidate Donald Trump spoke in New Hampshire on Monday rorists,” as well as an international coalition to confront the group “This president has, time and time again, sought to advance our interests, to strengthen our alliances and, where necessary, order our military to take action to protect the American people And the president has done that in a way that is smart, that is tough and has made our country safer,” he said Clinton campaign manager John Podesta also lashed out, saying Mr Trump’s speech “offered some disturbing insights into the dangers of a Trump White House Nothing in his rambling remarks came close to resembling a real strategy for fighting terrorists and keeping our people safe.” The sharp exchange suggests that Mr Trump will take aim during the campaign at both Mrs Clinton and Mr Obama, who has said he would work hard to help get her elected It also coincides with his campaign’s attempts to reset itself after spending a week defending—and revising—his accusation that a U.S.-born judge of Mexican descent couldn’t fairly oversee a lawsuit against the presumptive GOP nominee because of his proposal to build a wall on the southern border Mr Trump’s team also banned the Washington Post from covering its events on Monday after charging that it wrote a headline on his Fox News interview that he deemed unfair His campaign called it “a perfect example of inaccurate coverage” by the newspaper Washington Post Editor Marty Baron said in a state- shaken by the Orlando shootings, turning the focus to national-security issues, gun control and questions about which candidate is better suited to be commander-in-chief and to combat terrorism at home and abroad Both Mrs Clinton and Mr Trump reworked their campaign schedules to address the Orlando massacre The adjustment on both sides was a reminder of how abruptly the course of the presidential campaign may yet be altered by world events ment that the move “is nothing less than a repudiation of the role of a free and independent press.” He said the Post will continue to cover Mr Trump “as it has all along—honorably, honestly, accurately, energetically, and unflinchingly.” In addressing the Florida assault in New Hampshire, Mr Trump appeared to broaden his pledge to ban Muslims from entering the country by including immigrants from any country “with a proven history of terrorism against the U.S., Europe or our allies.” Mr Obama and Mrs Clinton—and some leading Republicans—have criticized such a ban, saying it is counterproductive and feeds the recruitment pitches of terrorist groups In an Ohio speech, the former secretary of state called for more outreach to Islamic communities and denounced “inflammatory anti-Muslim rhetoric.” Mr Trump said as president he would suspend immigration from any countries or regions that could present a threat to the U.S And he warned that if Americans “don’t get tough” about the country’s immigration laws “we’re not going to have our country anymore.” Mr Trump, who has been widely accused of stoking ethnic and racial divisions throughout his campaign, cast his proposal to bar Muslim immigrants as an inclusive, AllAmerican effort to protect women and people targeted for their sexual orientation —Felicia Schwartz contributed to this article THE WALL STREET JOURNAL Tuesday, June 14, 2016 | A5 How does foreign policy affect trading? 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Service Available Your Anniversary Immortalized In Roman Numerals JOHN-CHRISTIAN.COM 888.646.6466 Family members leaving a senior citizens center on Monday after being notified about the fate of their loved ones Basketball Star’s Frantic Call After Being Shot: ‘Come Get Me, Daddy!’ The father of Akyra Monet Murray, an 18-year-old victim of the Pulse nightclub shooting, said his daughter called him screaming from the venue after she was shot “She was screaming, ‘I’m shot! I’m bleeding! I’m losing a lot of blood! Come get me, Daddy!’ ” Albert Murray said in an interview Monday “We were racing to get her but we never made it.” Ms Murray was a recent graduate of West Catholic Preparatory High School in Philadelphia, where she was ranked third in her class and a 1,000point scorer on the basketball team, the school said The Murray family had arrived in Orlando on Friday for a vacation and to celebrate Akyra’s graduation, Mr Murray said She went to the club, which he said admits people 18 and up, with her cousin and a friend, both of whom were in- jured but survived He said Akyra had been posting pictures on Snapchat while having fun at the club, and his wife had been following along He said the call from his daughter came around a.m He heard yelling in the background, and Akyra kept saying she was bleeding The cousin, who was shot in the thigh, “was texting my wife saying that someone was shooting and come now.” He and his wife sped to the club, about 35 minutes away “I can’t even begin to tell you how I felt,” he said So many police surrounded the club the family couldn’t get close They went to three or four hospitals but couldn’t find their daughter They learned Monday morning she had died “I’ve cried so much I can’t even cry anymore,” Mr Murray said —Jennifer Levitz and Jim Oberman was so happy because she was going to be working in the gay community and be around her people,” said Starr Shelton, 35, Ms Morris’s ex-girlfriend “I know that she probably died helping to get people out.” Many victims were in their early 20s, and just beginning to make their way in the world Luis S Vielma, 22, was an emergency medical services student at Seminole State College, according to a state- ment from the school He was among the victims who weren’t gay, said his friend Eddi Anderson Mr Anderson said Mr Vielma loved his job working at Universal Orlando, where he dressed as a Gryffindor wizard and helped put visitors onto a ride called the Wizarding World of Harry Potter “He really, really loved his job,” said Mr Anderson “Harry Potter” creator J.K Rowling was moved by Mr Vielma’s death and posted a photo of him wearing a sweater vest and tie and giving two thumbs up “Luis Vielma worked on the Harry Potter ride at Universal He was 22 years old I can’t stop crying,” the author said in a post on Twitter on Monday Franky Dejesus Velazquez, at 50, was the oldest victim Known by family and friends as “Jimmy,” he had been a professional dancer who later worked selling cosmetics Like others, Mr Velazquez made a last-minute decision to go to Pulse that night after a friend invited him, said Sara Lopez, 49, of Casselberry, Fla Ms Lopez said she had known Mr Velazquez for about 30 years, since they met as teens at a birthday party in Puerto Rico A talented dancer, Mr Velazquez had been a member of the touring troupe Gibaro De Puerto Rico He traveled Mr McGill took off his shirt and tied it to help stop the bleeding He helped the man toward police, who had by then cordoned off the club A police officer directed Mr McGill and the injured man to a squad car “ ‘I’m going to need you to lay down on your back, put him on top of you Hold him as tight as you can,’ ” the officer told Mr McGill Mr McGill said he lay in the back of a squad car and held the man in his arms to keep him stable as they drove the short distance to the hospital “Everything was going pretty much in slow motion, so what seemed like five minutes seemed like forever and forever,” Mr McGill said An ambulance from Orlando Fire Department’s rescue unit was the first to arrive at the club, said Ron Glass, a department lieutenant The ambulance crew was leaving a nearby hospital when a police officer directed them to Pulse They were later joined by more than 70 emergency responders who tended the injured Clubgoers barricaded in one of the bathrooms sent texts and photographs to law-enforcement officials “that showed us some of what was happening,” said Orange County Sheriff Jerry Demings His deputies headed to the club, armed with Glock 45-caliber handguns and other weapons, after police issued a “signal 43.” calling for law enforcement help “That is the ultimate call for backup,” said the sheriff who also went to the scene How the Attacks Unfolded Accounts from police and city officials reconstruct the attack on Pulse nightclub Sunday Bar Pulse nightclub Patio Restroom Bar Main dance floor Stage SWAT team set up outside on the other side of the restroom wall Stage Bar Ent Entrance Wall where police used armored vehicle to create holes Restrooms Police believe Mr Mateen held several hostages in a restroom Approximately 15 to 20 people were hiding in another restroom Around 2:00 a.m Mr Mateen exchanges fire with an off-duty uniformed police officer working security Later, more officers arrive and enter the building, exchanging gunfire with Mr Mateen, who retreats to a restroom Police enter the building and remove ‘dozens and dozens’ of injured and uninjured people, according to Orlando Police Chief John Mina 2:28 a.m Around 5:00 a.m The shooter speaks with 911 dispatcher, pledges allegiance to Islamic State and prays in foreign language Police begin communicating with Mr Mateen Police attempt to breach the back wall with an explosive device but are unsuccessful Using an armored vehicle, they knock a hole in the wall leading to the restroom adjacent to where Mr Mateen is holed up Hostages are able to exit the building through the hole in the wall Mr Mateen is killed by police in a gunfight Sources: Orlando Police Department; City of Orlando Mr McNeal sent a text to a friend who was still missing: “I love you.” At about 2:40 a.m., Mr McNeal heard back: “Omg I love you too,” the text said The man had been hiding in a bathroom stall for disabled people along with about a dozen others The friend later said he had pried the toilet away from the wall and squeezed behind it to protect himself Police believed Mr Mateen was hiding in a bathroom with hostages while a group of clubgoers hid in another bathroom Talks between crisis negotiators and Mr Mateen yielded little “We were doing most of the asking,” said Mr Mina, the police chief There were growing concerns that Mr Mateen had explosives, possibly a bomb vest Around a.m., “there was a lot of conversation in the command post” that resulted in a THE WALL STREET JOURNAL consensus that they should breach the building, said Mr Demings, the sheriff “We wanted to get them out before he would continue his killing spree,” he said “Based on information that we received from the suspect and from the hostages and people inside,” Mr Mina said “We believed further loss of life was imminent.” Police tactical officers, aided by a county hazardous device to Spain, France, Germany and other countries with the group, according to Ms Lopez “He was an amazing dancer,” she said Antonio Davon Brown was a captain in the U.S Army Reserve from Melbourne, Fla One of three children, the 30-year-old was working on his Ph.D., his mother Rosetta Evans said “He was only a few months shy of becoming Dr Antonio Brown,” she said He could also be silly, with a “wild sense of humor,” his mother said “He would lighten a room just walking in it.” For many family members and friends, such happy memories stood in contrast to the final harrowing moments inside the club early Sunday morning A brief video clip posted to Snapchat by Amanda Alvear, 25, and replayed on news sites Monday captured the moments when the shooting commenced One 30-year-old man sent his mother panicked texts as he hid in a bathroom where the gunman had retreated He told his mother he loved her “He’s coming,” he wrote “I’m gonna die.” Another man, 19, called his mother, who told him to hide in the bathroom Both were killed Cory Richards broke down crying Monday as he recalled becoming separated from his boyfriend, Enrique Rios Jr., 25, who was killed during the rampage “When everyone fell to the floor, I lost him,” said Mr Richards, as he sobbed and struggled to speak Mr Rios, from a big family in Brooklyn, worked as a home-health aide and went to college The couple, from New York City, had been dating for four or five months, Mr Richards said They had arrived in Orlando at 2:30 p.m Saturday, excited for their first-ever vacation together “The simple fact is that we came over here just to have fun,” Mr Richards said —Jon Kamp contributed to this article team, set off an explosive on the club’s back wall, as well as several diversionary devices in the building, Mr Demings said The explosion didn’t penetrate the wall completely, so officers rammed the building with a Bearcat armored vehicle, which broke open a large hole Mr Mina said People still trapped in the club then ran or were helped to safety as the shooter came out of the other bathroom and began firing, Mr Demings said Police and sheriff’s deputies returned fire and killed Mr Mateen, the sheriff said “We were able to rescue dozens and dozens of people out of that hole,” Mr Mina said Responding to questions about the hourslong delay before rushing the gunman, Mr Mina said Monday that officers “saved many, many, many lives.” Afterward, medical crews entered the club Cellphones rang as the emergency responders looked for wounded, Mr Glass said Helped by police, they carried out dozens of injured people, Mr Mina said The cellphones of victims inside and outside the club continued to ring Sunday as representatives of the FBI and the medical examiner’s office made a final count of the dead “Those that responded to it will remember that for the rest of their lives,” Mr Glass said “That’s why we’re working to get the counseling going for responders so they have someone to talk to and get some of this off their chest.” —Tripp Mickle contributed to this article ADREES LATIF/REUTERS; VICTIMS FROM LEFT: FACEBOOK/ASSOCIATED PRESS; FACEBOOK/REUTERS; STARR SHELTON; FACEBOOK/REUTERS; NANCY CASTILLO Among those who died were a bouncer at the club and a theme-park ‘wizard’ THE WALL STREET JOURNAL Tuesday, June 14, 2016 | A7 * * * * TERROR IN ORLANDO PORT ST LUCIE, Fla.—Security guard Omar Mateen outwardly projected a life of normalcy, working at a private, gated golf community on Saturday afternoon and then driving north to Orlando where he massacred 49 people at a gay nightclub By Josh Mitchell, Valerie Bauerlein and Damian Paletta New details are emerging about Mr Mateen, the 29year-old man that investigators say carried out the biggest mass shooting in U.S history He apparently drew no attention in his final days, praying and working without raising suspicion He was also in the midst of buying two firearms, one a semiautomatic rifle, that he would take with him to Orlando, law-enforcement officials said He previously scouted out nearby Walt Disney World for a possible attack, suggesting the plotting had been in place for some time, according to officials briefed on the investigation “That seems to be a normal FBI Continued from Page One massacre Law-enforcement officials said the sheer volume of people in the U.S who have expressed some interest in radicalism but don't pose an obvious threat creates enormous logistical challenges for investigators trying to track them all “There’s probably a ton of these guys in the U.S., and we simply don’t have the resources to put someone on them 24/7,” said Deputy Chief Michael Downing, who commands the Los Angeles Police Department’s counterterrorism bureau Mr Comey said FBI agents are combing through every part of the gunman’s life to see if they missed anything in their previous investigations and to determine if there is something they could be doing differently “Our work is very challenging We are looking for needles in a nationwide haystack,” he told reporters “But we’re also called upon to figure out which pieces of hay might someday become needles.” The FBI first investigated Mr Mateen in 2013 following complaints by co-workers at a Florida courthouse, where he worked as a security guard, who were alarmed by his claims he had relatives in al Qaeda and was a member of Hezbollah, Mr Comey said ‘We are looking for needles in a nationwide haystack,’ said Mr Comey He also claimed to have known friends of the Tsarnaev brothers, who bombed the Boston Marathon in 2013 The FBI conducted surveillance, searched public and private records, and introduced informants to Mr Mateen to see if they could determine if he was planning a crime When agents questioned him about the statements, Mr Mateen said he had made them in anger because he thought his co-workers were treating him unfairly The investigation found no evidence to contradict his claims, Mr Comey said At that time, the FBI also probed Mr Mateen’s trips to Saudi Arabia That investigation led Mr Mateen’s name to be placed on a terrorist watch list, meaning the FBI would have been notified had Mr Mateen tried to buy a firearm His name was removed after the investigation closed Months later, the FBI questioned Mr Mateen again, because his name surfaced in a probe of an American, Moner Mohammad Abu-Salha, who traveled to Syria and carried out a suicide bombing Investigators determined the two knew each other in passing but didn’t have meaningful connections, Mr Comey said “I don’t see anything in reviewing our work that our agents should have done differently,” he said Islamic State and similar groups have had difficulty carrying out large-scale assaults in the U.S But a shooting in San Bernardino, Calif., last December behavior, even when you think of serial killers,” said Lorenzo Vidino, director of the program on extremism at George Washington University “They can some of the most heinous acts and live a normal life that gives no signs.” Investigators are looking into alleged violent outbursts by Mr Mateen in 2009, which forced his young wife to flee for safety They also are scrubbing back through investigations they conducted into Mr Mateen in 2013 and 2014, which ended up dissolving before they could pinpoint allegations that he might have been sympathetic to terrorists People who knew him described patterns of erratic and unpredictable behavior He had a friendly demeanor to those who knew him casually, but people who knew him well saw volatile, even violent behavior On Friday night, Mr Mateen showed up at the Islamic Center of Fort Pierce alone to pray, said Adel Nefzi, who serves on the mosque’s board He was among dozens who prayed during a special Ramadan service that started shortly after 10 p.m He left was also carried out by apparently self-radicalized killers, and security experts fear such lonewolf attacks will continue to unfold That creates a particular set of challenges for law enforcement trying to monitor potential attackers Seamus Hughes, deputy director of the Program on Extremism at George Washington University, said the FBI must “triage” the flood of potential terror-related cases while balancing security with rights “You don’t want the FBI forward leaning and encroaching on First Amendmentprotected activities, but they’re also tasked with prevention and investigation,” he said “It’s a difficult balancing act.” Former agents described the difficulty in determining whether someone is dangerous Numerous variables must be considered, they said, including the prospect that someone who files a complaint might have an agenda Bruce Hoffman, a terrorism expert at Georgetown University, said agents must weigh opaque factors such as the level of extremist influences on someone and the importance of online statements Speaking with reporters, Mr Comey refused to mention Mr Mateen by name, saying he didn’t want to feed any “twisted notion of fame and glory” the shooter may have had Law-enforcement officials said federal agents are scrutinizing Mr Mateen’s friends and family to see if any aided in some way, though Mr Comey declined to discuss that part of the investigation The officials said that while the investigation is in early stages, Mr Mateen’s motives appear to have been muddled, as he was eager to proclaim loyalty to groups on opposite sides In a 911 call during the attack, he declared allegiance to Islamic State and said he was acting out of solidarity with Mr Abu-Salha, who was a bomber for the Nusra Front Those two groups actively oppose each other Law-enforcement officials have said they are also examining the role antigay bias may have played in the attack Nothing the FBI investigations into Mr Mateen unearthed would have prevented him from buying guns in the days before the nightclub shooting, Mr Comey said A U.S official said investigators believe Mr Mateen used websites such as YouTube and Facebook to learn about terrorist groups Critically, investigators haven’t found any evidence yet that Mr Mateen used online chat rooms or encrypted smartphone apps to make direct contact with suspected militants or networks of militants the U.S was monitoring The absence of “derogatory information” on Mr Mateen in either electronic or human-intelligence channels meant lawenforcement agencies had no cause to suspect him in the months before the attack, according to the official “If he had communicated more,” the official said, “we might have picked him up on something.” —Kate O’Keeffe, Tamara Audi and Adam Entous contributed to this article JOE CAVARETTA/ORLANDO SENTINEL/ASSOCIATED PRESS Shooter’s Routine in Last Days Hid Clues Seddique Mateen, the father of Omar Mateen, spoke to reporters from his Port St Lucie, Fla., home on Monday promptly after the prayer ended 80 minutes later Hours later, Mr Mateen was working his shift as a guard at the south entrance of PGA Village, a gated community of houses and a golf course in Port St Lucie Brandon Spadaro, a resident there, recalled driving up to the gate to enter at about noon Saturday, but his clicker didn’t work Mr Spadaro said he backed up and drove toward the guest entrance, and that Mr Mateen opened the gate for him He told Mr Spadaro to take his gate-opener to get it fixed “ ‘Take it to the back gate, they’ll take care of it,’ ” Mr Spadaro, 35, recalled him saying “He was totally fine.” His shift ended at p.m., giving him only a few hours before he would have had to begin the two-hour drive northwest to Orlando Mr Mateen was born to Afghan parents in New York in 1986 On Monday, Mr Mateen’s father, Seddique Mateen, said in a Persian-language Facebook post that he was “terribly saddened” by the attack and that he had “no idea” what caused it The family would move to Florida when Omar was He graduated from high school in 2005 and got his associate’s degree in criminal justice technology the following year from Indian River State College in Fort Pierce, according to a spokesman In 2007, he started working at G4S Secure Solutions, a contractor for the PGA Village community A man in a G4S uniform outside a nearby Chevron station on Monday said he knew Mr Mateen well, having worked with him the past three years The colleague described Mr Mateen as “a regular, happygo-lucky type of guy.” But he said Mr Mateen would often disparage gays In 2008, Mr Mateen met Sitora Yusufiy online, and they would marry the following year She was from New Jersey, and they lived together in Florida before he began abus- ing her, family members said “They were only together three or four months—that’s it,” said a man identified as Ms Yusufiy’s father, from his Edison, N.J., home “She was abused by him,” the man said “The cops were called on him.” The Port St Lucie and Fort Pierce police departments and the St Lucie County sheriff’s office say they have no record of significant incident reports involving Mr Mateen Efforts to reach Ms Yusufiy were unsuccessful Mr Mateen would later remarry and have a son, and he continued working at G4S He also made two trips to Saudi Arabia, suggesting his faith had begun to play a more prominent role in his life Within the past week or so, Mr Mateen bought a handgun and a rifle, in separate purchases, from St Lucie Shooting Center, roughly miles from his job site “He purchased two guns legally,” Ed Henson, owner of the gun store, told reporters Monday, noting that the purchases were about a week apart “He is familiar to me vaguely,” Mr Henson said Advancing the Science of Smart Energy With some of the greatest minds in engineering and computer science, the Siebel Energy Institute pushes the boundaries of innovation to address today’s pressing energy challenges The Siebel Energy Institute funds research grants in data analytics, including statistical analysis and machine learning, to accelerate advancements in the safety, security, reliability, cost efficiency, and environmental integrity of modern energy systems www.SiebelEnergyInstitute.org A D V I S O R Y B O A R D The Siebel Energy Institute is a project of the Thomas and Stacey Siebel Foundation All research results will be shared in the public domain A8 | Tuesday, June 14, 2016 THE WALL STREET JOURNAL * *** TERROR IN ORLANDO A Punitive Line on Homosexuality Experts: Nightclubs Many Muslim nations have harshly antigay laws, forcing people to live under the radar BY KAREN LEIGH AND ASA FITCH At least 10 predominantly Muslim countries around the world, some of them close U.S allies, have laws on the books that set a punishment of death for homosexuality Among those that don’t, Egypt has conducted mass arrests of gay men, and homosexuals can face torture even in Lebanon, the Arab world’s most liberal country A question now is how, or whether, Islam’s posture toward homosexuality figured in Omar Mateen’s killing of at least 49 people at a gay nightclub in Orlando after claiming allegiance to Islamic State “God himself will give punishment to homosexuality It is not for people to decide,” the shooter’s father, Seddique Mateen, said Monday His words reflected a negative stance toward homosexuality that is deeply ingrained in large parts of the Muslim world—and in laws that purport to deliver that holy judgment In most Muslim societies, the survival strategy for gay, lesbian, bisexual and transgender communities has been to stay below the radar Homosexuality isn’t recognized as an identity or lifestyle in Islam, and homosexual acts are forbidden, though punishments vary among the major schools of Islamic law While same-sex attraction has historically been tolerated in some Muslim societies, gay Intolerance Need More Security Countries where homosexual acts are illegal and in some cases punishable by death Death penalty under Shariah law, and implemented nationally or provincially Death penalty under Shariah law, but not known to be implemented Same-sex acts illegal A FG H A N I STA N IRAQ BY JIM CARLTON AND JON KAMP SAUDI ARABIA SUDAN M A U R I TA N I A IRAN PA K I STA N U N I T E D A R A B E M I R AT E S Q ATA R NIGERIA YEMEN SOMALIA Homosexual acts are legal in Indonesia, with the exception of two provinces Source: International Lesbian, Gay, Bisexual, Trans and Intersex Association THE WALL STREET JOURNAL sex has always been illegal because it occurs outside of marriage “In Islamic law, all sex outside a licit relationship is forbidden, so by definition you cannot have a licit sexual relationship between two men or two women,” said Jonathan Brown, an expert in Islamic law at Georgetown University Homosexuality is outlawed across most of the Muslim world, according to a recent report by the International Lesbian, Gay, Bisexual, Trans and Intersex Association, with a handful of exceptions such as Bahrain and Mali In practice, however, countries rarely mete out the most severe punishments, in part because Shariah, or Islamic law, sets a high standard of proof—either a confession or the testimony of four upstanding men who witnessed the act Gay intercourse in Pakistan is punishable by life in prison, though the government seldom sentences people, according to a 2015 report by the U.S State Department In Iran and Afghanistan, homosexuality is banned, and harsh penalties have been enforced against it Iran executed three men in 2011 on charges that included homosexual acts Afghan law penalizes homosexual relations with five to 15 years in prison A 2015 human rights report by the State Department said police routinely harass, detain and use violence against gay people In Saudi Arabia, homosexuality can be punishable by death, but there haven’t been any such executions in the country’s recent history Com- mitting or promoting homosexual acts in public is usually punished by jail time, lashes and fines Islamic State and other extremist organizations are known for an extreme hatred of homosexuals In the territory it controls in Syria and Iraq, Islamic State has made executions a hallmark of its bloody reign In one instance reported by the activist group Raqqa is Being Slaughtered Silently, a blindfolded man was thrown from the roof of a two-story building in Iraq He survived the fall with critical injuries and was subsequently stoned to death in front of a crowd of spectators, including children Regional governments are increasingly balking as global LGBT activism progresses, said Neela Ghoshal, a researcher at Human Rights Watch “There seems to be this fear that there’s a global movement toward accepting people, when of a lot of these countries have posed themselves as defenders of the traditional family,” she said “They’re trying to prevent significant actions at the global level.” According to Human Rights Watch, gay people struggle even in Lebanon, where the capital Beirut’s raucous club scene includes gay bars Authorities in neighboring Egypt have used criminal charges, including “promoting debauchery” and “contempt of religion,” to make sweeping arrests of gay men who gather in private spaces, even though no law exists explicitly banning homosexuality —Tamer El-Ghobashy, Joe Parkinson and Raja Abdulrahim contributed to this article Orlando Forges Unity in the Wake of Attack ORLANDO—This central Florida city’s carefully maintained image as a familyfriendly destination took a severe blow over the weekend as news spread around the globe of a mass shooting that took the lives of 49 people at a packed nightclub But business leaders and residents of the metro area, which has surged to nearly 2.4 million people from just over Assault Weapons Explained The use of an AR-15 during the U.S.’s worst mass shooting has brought the term “assault weapon” back into the lexicon— but there is much confusion about the term Here’s a primer: What is an assault weapon? The guns generally identified as assault weapons are semiautomatic rifles that operate on the same principles as semiautomatic handguns According to the Bureau of Alcohol, Tobacco, Firearms and Explosives, “semiautomatic rifle” means any repeating rifle that uses a portion of the energy of a firing cartridge to extract the fired cartridge case and chamber the next round It requires a separate pull of the trigger to fire each cartridge So what is the popular accepted definition of an assault weapon? Many of the firearms identified as assault weapons are semiautomatic rifles that look like weapons used by the military A prominent example is the AR-15 rifle And that’s what was under the 1994 assault-weapons law? Yes and no The now-expired law named 19 models of firearms and also banned copies of those models The law also outlawed guns that had the ability to accept detachable magazines and had at least two military-style features, such as flash suppressors at the muzzle and pistol grips Would the Orlando gun have been illegal under the ’94 law? We don’t know It would depend on whether it had military-style features —Gary Fields And at Parliament House, arguably the most prominent gay nightclub in town, there is a benefit being planned for later in June to help both victims and the Pulse employees who are now jobless The shooting at Pulse happened when the downtown gay club was holding one of its Latin-themed nights Both Orlando’s gay and Hispanic communities have grown in recent years and become woven into the fabric of the city, say lo- 500,000 in 1970, note that the most deadly shooting in U.S history may serve to bring the community closer together Local businesses are moving to help support the victims of the attack At Guavate, a restaurant in the city that caters to the sizable local Puerto Rican community, management plans to contribute all sales from Tuesday and Wednesday to benefit victims of the attack and their families cals, speaking to the city’s increasingly diverse profile In particular, the gay community’s rise has been tied to the fact the theme-park industry is seen as LGBT-friendly, locals note Orlando is a rapidly changing community: The area’s economic base has begun to broaden well beyond theme parks and the population has increasingly started to welcome a range of groups, minority and otherwise “We are building a real, true community, not just a place for transients,” said Michael Perkins, executive director of the Orange County Regional History Center Mr Perkins, himself a 30year Orlando resident, said the response to the tragedy already from locals, who have lined up in sizable numbers to donate blood and put together makeshift memorials, speaks volumes “Orlando is resilient,” he said Democrats Push to Tighten Gun Access BY KRISTINA PETERSON AND GARY FIELDS WASHINGTON—Sunday’s mass shooting in Orlando, Fla., spurred Democrats to renew a long-stalled effort to tighten access to guns, injecting the polarizing debate into the contests for the White House and Senate Senate Democrats on Monday said they would push for a vote again as soon as this week on legislation that would give the Justice Department authority to prevent a known or suspected terrorist from buying firearms or explosives if authorities believe the weapon could be used in connection with terrorism Someone who meets that criterion is likely to be on one of the federal terrorism watch lists, including the no-fly list Presumptive Democratic presidential nominee Hillary Clinton endorsed their effort, saying it was “essential” to stop terrorists from obtaining weapons It isn’t clear that the legislation would have been able to prevent the Orlando shooter, whom police identified as Omar S Mateen, from obtaining the weapons, including an AR-15 semiautomatic rifle, he used to kill 49 people and injure 53 others at a gay nightclub in the deadliest mass shooting in U.S history Senate Democrats said they believed law-enforcement officials under this bill would have had the authority to prevent Mr Mateen from purchasing a gun The Federal Bureau of Investigation twice probed Mr Mateen in 2013 and 2014 over hints of radical leanings before closing those cases as inconclusive FBI officials said Mr LUKE SHARRETT/BLOOMBERG NEWS BY CHARLES PASSY AR-15 rifles are displayed during the NRA’s annual meeting in Louisville, Ky., on May 20 Mateen was on a federal watch list, but was later removed Had he bought a gun while on the watch list, law-enforcement officials would have been notified The measure stalled in the Senate in an almost entirely partisan 45-54 vote in December after the mass shooting in San Bernardino, Calif Critics of the legislation said at the time that the terrorism watch lists, including the no-fly list, sweeps too broadly and could prevent law-abiding citizens from purchasing a firearm The federal government maintains several databases of people suspected of links to terrorism, including a no-fly list barring certain individuals from boarding airplanes in the U.S John Velleco, director of federal affairs at the Gun Owners of America, said the pro- posals now being discussed were fraught with problems “A person can be put on the no-fly list without knowing it It is difficult to get off the list once you’re on it, and there’s no due process,” he said Senate Democrats said their bill would enable anyone erroneously included on the list to quickly appeal the decision Democrats said they expected Sunday’s massacre would apply new pressure on Republicans to reconsider their stance on the legislation A half-dozen GOP senators running for re-election in battleground states this year are likely to face attacks from Democratic challengers if they oppose the measure Notably, Senate Democrats didn’t immediately push for banning “assault weapons,” or semiautomatic rifles that operate on the same principles as semiautomatic handguns Mrs Clinton, however, renewed her call for reinstating a 1994 ban That law banned certain semiautomatic weapons, including some AR-15 models When the prohibition expired in 2004, Congress, then controlled by Republicans, didn’t renew it Recent efforts to reinstate the ban have encountered opposition from Republicans, some Democrats and gunrights groups A proposal to ban the manufacture and sale of certain semiautomatic rifles and ban high-capacity ammunition magazines was blocked in a 40-60 vote in April 2013 Republicans largely responded to the Orlando attacks by saying the U.S must be more assertive in thwarting Islamic State militants —Reid J Epstein contributed to this article The attack at a gay nightclub in Orlando, Fla., highlights what law-enforcement officials call security lapses at many of the nation’s clubs and entertainment venues With crowded dance floors and often minimal security, nightclubs make attractive targets for terrorists, experts said And unlike their European counterparts, U.S nightclubs have had little experience with terror-inspired violence and have been more concerned about unruly drunks or gang brawls Authorities say Omar S Mateen exchanged gunfire outside the Pulse nightclub early Sunday with an off-duty police officer working for the bar, then continued shooting inside, leaving 49 dead victims The owners of Pulse referred inquiries to a public-relations firm, which didn’t return calls J.C Diaz, executive director of the Nightlife Association, a Crowded clubs and bars can make attractive targets for terrorists trade group for the nation’s 50,000 clubs and bars, said security varies widely, ranging from a club in Atlanta that is patrolled by a guard toting a semiautomatic rifle to ones that simply have a doorman But even with few resources, he said, clubs can better prepare for an attack by teaching staff to fight back with beer bottles, fire extinguishers or anything else they can grab The key, he said, is to confront a shooter rather than wait to be possibly shot Islamic State-backed attacks on bars and entertainment venues in Paris last November, which left 130 dead, should have been a wake-up call to managers in the U.S that similar attacks were headed here, said Robert C Smith, president of Nightclub Security Consultants, a San Diego-based provider of bouncer training “If I want to be an active shooter and I want to make a name for myself, I am going to go to a club that is unprepared,” Mr Smith said Clubs can also serve as symbols of Western lifestyles and mores Pulse, the location of Sunday’s massacre, catered mostly to the gay community; the shooter’s father has said he was angered by gay men expressing affection in public Only California requires club security workers to undergo terrorism training, and even there it is only two hours’ worth Security consultants say the best defense starts at the door, where doormen and other security should be trained to intercept people who seem bent on doing harm “There will be a different look in the eyes—troublemakers who are just angry, or someone who will have the intense, determined look,” said Brian Allen, director of Gilbert, Ariz.-based International Security Training LLC Some venues, like Echostage in Washington, D.C., have extensive front-door security In addition to doormen, who frisk and wave metal-detector wands, the large club employs off-duty police officers to stay in front with uniforms and marked vehicles, said Corey Primus, urban marketing coordinator for an owner of the establishment “I’m not going to say it couldn’t happen, but the likelihood of that happening is a lot less,” Mr Primus said Meanwhile, mosques around the country, already on high alert for retaliation since the San Bernardino, Calif., terror attack, are strengthening security as the community is in the midst of the Ramadan holiday Nezar Hamze, regional operations director for the Council on American-Islamic Relations in Florida, sent an “action alert” to mosques in the state Sunday advising precautions including keeping the lights on, reaching out to law enforcement and stationing a door greeter who can call 911 if needed Tuesday, June 14, 2016 | A9 THE WALL STREET JOURNAL WORLD NEWS to Yemen City Resets After al Qaeda Uganda Pull Back Residents say life was both stable and brutal under Islamists before yearlong rule ended But life in this port city under the yearlong rule of al Qaeda in the Arabian Peninsula was also brutal: The militants detained and questioned many with little justification, and executed some deemed unsympathetic to their views, some residents said Just over a month after AQAP fled an advancing Saudiled military offensive, a picture is emerging of how the extremist group governed what had been its crown jewel Unlike Islamic State, AQAP, an affiliate of al Qaeda that claimed responsibility for the Charlie Hebdo shootings in Paris last year, hasn’t made territorial control its focus in the seven years since its founding in Yemen This city of 300,000 was the most populous territory al Qaeda had ever held Yet some residents here said AQAP provided a level of stability and engagement that was lacking under previous governments, an achievement that will help it maintain loyal allegiances on the ground despite its retreat Mohammad al-Katheeri, a father of six, remembers how when high winds lashed the southern coast in November, al Qaeda sprang into action “They took all measures necessary to protect people— they even evicted people at risk, providing them with temporary housing,” he said AGENCE FRANCE-PRESSE/GETTY IMAGES By Saleh al-Batati in Al Mukalla, Yemen, and Asa Fitch in Dubai BY NICHOLAS BARIYO STRINGER/AGENCE FRANCE-PRESSE/GETTY IMAGES Whether residents in Al Mukalla, Yemen, needed generators to keep the lights on or shelter from an impending cyclone, al Qaeda was often ready to help In Hunt For Kony Yemeni soldiers, left, stood guard in Al Mukalla after a suicide attack last month At right, an AQAP banner denounces democracy “These measures weren’t taken by the former government when we had floods in 2008.” AQAP moved in on Al Mukalla in April 2015 amid a power vacuum created by a now 14-month-old civil war between Shiite Houthi rebels and the internationally recognized government of President Abed Rabbo Mansour Hadi The Saudi-led military coalition supports Mr Hadi Residents said public services including electricity, water and waste disposal were largely managed to their satisfaction under AQAP’s governance Many said civil justice was meted out fairly, and one resident said numerous longstanding property disputes were resolved AQAP had money to spend, too, in the form of port and oil revenue and an estimated $100 million it looted from the city’s central-bank branch “They managed to operate the seaport and buy generators, to buy gas and diesel,” said Ashraf al-Obthani, a 30year-old lawyer The extremist group cast its retreat as a gesture to save the city from more fighting But many residents said they were happy to see AQAP go The closure of the city’s only airport and the lack of immigration services limited travel Schools were initially closed because AQAP didn’t accept having boys and girls in the same institutions The militants later relented “We were excited when they decided to leave the city,” said Najwa al-Sawmahi, a mother of two who teaches EgyptAir Finding Points Away From Sudden Blast CAIRO—Egyptian officials probing the crash of EgyptAir Flight 804 said the plane veered off course before plunging into the sea, suggesting an abrupt in-flight explosion didn’t bring down the aircraft The Airbus Group SE A320 plane bound for Cairo from Paris deviated from its course while flying at 37,000 feet, first turning left before rolling to the right and completing a full circle, investigators said in their latest update into the May 19 crash, which killed all 66 people on board The finding confirms statements initially made by Greek officials about the last seconds of flight but initially rejected by Egyptian authorities, who suggested contact was lost more abruptly Investigators have spent days going over all available radar information to reconcile the conflicting theses The finding does little to explain why the plane crashed into the Mediterranean Sea No cause has been ruled out, Egyptian officials have said The plane broadcast several fault messages before all contact was lost, indicating possible smoke in the nose of the aircraft The messages alone haven’t been sufficient to determine a likely cause of the crash, investigators have said, adding urgency to recovering the black boxes that store technical data and conversations in the cockpit —Dahlia Kholaif English at a public school Ameer Ba Awdan, a journalist, was arrested after participating in a demonstration against terrorism He languished in an AQAP jail cell by himself for seven months, monitored by video camera Shortly before the Saudi-led coalition entered the city, Mr Awdan was taken with other prisoners to a beach Some were executed; he was released, along with some others Mr Awdan doesn’t know why “I was numb,” he said Life for women was particularly harsh Several residents described a case where a woman accused an AQAP militant of rape She was quickly convicted of adultery and stoned to death, they said There has been little indication that AQAP is trying to move back into the port city Since the Saudi coalition retook Al Mukalla, Yemen’s branch of Islamic State has carried out two deadly attacks targeting security forces The U.S has deployed a small contingent of special forces to Al Mukalla to advise the coalition on maintaining control KAMPALA, Uganda—The Ugandan military plans to withdraw troops involved in U.S.-backed operations against the Lord’s Resistance Army rebels in the Central African Republic, further complicating the manhunt for one of Africa’s most infamous warlords, Joseph Kony Kampala plans to start drawing down its 3,000-strong force in a process that will be completed by the end of the year, Lt Col Paddy Ankunda, a military spokesman, said in an interview Monday Col Ankunda said the military operation has degraded the militia’s capacity to attack local communities, but said the Ugandan government was frustrated by what he said was declining support from other countries “We have achieved a lot in this operation but we could have done even better with more support,” Col Ankunda said “We have now taken a firm decision to withdraw.” A State Department official praised Uganda’s involvement in the mission and said the U.S would continue to work with other countries affected by the LRA “With U.S support…the Ugandan military has removed four of the LRA’s top five most senior and notorious commanders from the battlefield,” the official said “During that time the number of people killed by the LRA has dropped by over 90%.” It isn’t clear how much the U.S spent on the operations A $5 million reward Washington announced in 2013 for information about Mr Kony or his top commanders remains in place A Royal Count and the King of Prussia walk 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other, more-upbeat economic data, contributing to a 3.2% drop in Shanghai shares Monday and fueling concerns that growth in the second quarter could be weaker than in the first Several reports released Monday suggested pockets of relative strength in the world’s second-largest economy But fixed-asset investment expanded by a weaker-than-expected annual clip of 9.6% in the first five months of the year, compared with 10.5% growth through April Even worse, the private investment portion grew by a mere 3.9% in January-May, down from an already weak 5.2% in JanuaryApril A slowdown in private investment is particularly worrisome because it indicates that companies are holding off spending, signaling limited confidence in the future and denying the economy what is often more effective and sustainable investment than government spending Sheng Laiyun, a spokesman for the country’s National Bu- Public-Private Divide Overall investment in China has held up much better than private investment China's fixed-asset investment Year-over-year change BY JAMES T AREDDY 40% Private Overall 30 20 10 2011 ’12 ’13 ’14 ’15 ’16 Sources: CEIC Data; National Bureau of Statistics CHINA DAILY/REUTERS Investment numbers reveal firms reluctant to spend, indicating softening momentum THE WALL STREET JOURNAL Workers assembled rice snacks in a food-products factory in Jiaxing, in Zhejiang province, in June reau of Statistics, cited overcapacity and a difficulty in obtaining financing as reasons private companies are reluctant to invest, though he said China’s economic fundamentals remain sound “The slowdown in private investment shows that economic growth momentum needs to be strengthened,” he said The weak investment data coincided with reports showing property and auto sales still going strong, illustrating the mixed picture in China’s economy, with the industrial sector struggling while consumption has remained a bright spot May retail spending held up, despite the prospect of smaller wage increases this year and growing concern over unemployment, “If you look at all the data from May, you can pick and choose and find industries doing well,” said IHS economist Brian Jackson “But if you’re concerned about GDP, the figures from April and May pretty much show the economy will slow down from the 6.7% seen in the first quarter.” China’s property market continued to strengthen, though at a slower pace than earlier this year Housing sales grew 53.4% by value in the first five months of 2016 compared with 61.4% in the first four months as larger cities tightened sales restric- tions to rein in property prices The deceleration suggests the market has peaked Despite recent strong property sales, Oriental Furniture Co., which makes marble tables and flooring at its factory in Songyuan, a city in northeastern China, said it doesn’t expect to invest much in 2016 given the tepid outlook Gao Junming, the company’s general manager, said he is looking at new product lines and more government stimulus to boost the company’s prospects “Hopefully that will allow us to sell more,” he said Consumer confidence in China edged down in May over April, according to the ANZ-Roy Morgan China Consumer Confidence Index, as fewer respondents said they expected their personal financial situation to improve in the immediate future The weak May investment data increased the chance that Beijing will take more steps to revive the economy to ensure it hits its 2016 growth target of 6.5% to 7% “Private investment is difficult to boost very quickly, so the response will have to be largely from the government spending side,” said Ding Shuang, an economist with Standard Chartered (Hong Kong) Ltd —Liyan Qi contributed to this article SEOUL—North Korean hackers stole wing designs for a U.S jet fighter and photos of parts of spy planes from a South Korean company, according to authorities in Seoul, the latest in a series of cyberattacks allegedly done by Pyongyang More than 40,000 documents related to the defense industry were stolen in attacks on two companies that began in 2014 and were discovered earlier this year, the Korean National Police Agency said Monday One of the companies, Korean Air Lines Co., said it was told by police its systems had been breached Among the documents allegedly stolen were wing designs for an F-15 jet fighter and photos of parts of unmanned spy planes, a spokesman for the company said Korean Air makes aircraft parts for South Korea’s military, which flies F-15 jets, a model originally built by McDonnell Douglas Corp., which Boeing Co acquired in 1996 A South Korean military official said the leak wasn’t of sensitive information, such as F-15 engines or electronic systems “The leak will likely have a negligible impact on national security,” the official said The police said that by detecting the breach they prevented what appeared to be the start of a larger-scale cyberat- INTS KALNINS/REUTERS Seoul Says North Korea Stole F-15 Designs BY ALASTAIR GALE AND KWANWOO JUN South Korean police say hackers took jet fighter wing designs tack The attack originated from an internet address based in Pyongyang and used in a 2013 cyberattack that disabled the computer systems of South Ko- rean banks and TV stations, the police said “North Korea turns out to have been preparing for a long time to try to launch a countrywide cyberattack,” the police German Leader Goes to Beijing Amid Worries About Trade Hurdles agency said There was no immediate reaction from North Korea to Monday’s announcement It frequently denies involvement in cyberattacks, but defectors and outside experts say it has built up its hacking abilities in recent years U.S investigators believe a unit of North Korea’s main spy agency devoted to cyberwarfare was behind a hacking attack on Sony Pictures in 2014 The latest incident also included the theft of around 2,000 files related to communications equipment in South Korea Earlier this year, South Korea said North Korea had tried to attack computers that control transport systems HOW HWEE YOUNG/PRESS POOL SEALING THE DEAL: German Chancellor Angela Merkel attended a signing ceremony in Beijing on Monday during a three-day trip to China The visit comes amid concerns among German firms about obstacles to doing business in the country “It is important to have a secure juridical environment,” she said during remarks with Chinese President Xi Jinping, according to the Associated Press Venezuela Oil Output Dropped Sharply in May Venezuela registered its biggest monthly oil-production decline in a decade in May, according to data released Monday by the Organization of the Petroleum Exporting Countries, signaling further trouble for a country already enduring severe economic hardship The decline of 120,000 barrels a day, to 2.37 million barrels a day, underscores the inability of state energy company Petróleos de Venezuela SA to maintain oil-industry investments, as the region’s largest petroleum exporter suffers a debilitating cash crunch, widespread food shortages and civil unrest In recent months, major oil services companies, including Halliburton Co and Schlumberger Ltd., said they were cutting back operations in Venezuela as the country struggles to repay multibillion-dollar debts to partners “This is very surprising,” said Francisco Monaldi, a Latin American energy policy fellow at Rice University in Houston, who closely tracks Venezuela’s oil industry “If you want to point to the biggest problem, it is cash flow, which for PdVSA now looks worse than we had imagined.” Venezuela, which relies on oil for nearly all its income, is facing severe dollar shortages due to low oil prices, as well as more than a decade of profligate spending under the ruling socialist government, which used oil-sector money to fund social programs Oil output is far from the million barrels a day that its officials have long targeted Monthly oil production has fallen this much only once since 2003, when the country’s oil industry came to a standstill dur- ing a devastating strike led by PdVSA workers seeking the ouster of then-President Hugo Chávez The last time was in 2006, said Gary Ross, head of global oil at the consulting firm PIRA Energy Group, who added that the drop-off may give leverage to oil-field services companies that are now in payment negotiations with Venezuela “There’s an urgency there now that wasn’t there before this happened, because of the lost production,” Mr Ross said —Juan Forero contributed to this article SHANGHAI—Police on Monday blamed an airport blast that left five people injured on a migrant factory worker with debts from online gambling who had warned friends he was about to embark on a suicide mission The Shanghai police quoted a message that Zhou Xingbai sent to a group chat saying that he owed many people money: “Preparing to something extremely crazy Will surely lose my life.” Sunday’s explosion near the check-in counters for several Asian airlines at Shanghai Pudong International Airport left four bystanders with minor injuries, including an unidentified Philippine national, police said Police indicated that Mr Zhou was the most seriously hurt person in the incident, having slashed his own neck with a knife after setting off the blast Police said Sunday he was in critical condition and gave no update on his condition on Monday Disgruntled debtors have been blamed for numerous small attacks in China in recent years, including bus fires In 2013, a wheelchair-bound man set off a small explosion at Beijing Capital International Airport that caused minimal damage; he was said to be upset about his physical state Mr Zhou’s crude weapon consisted of beer bottles stuffed with firecrackers, according to police, who said the perpetrator had thrown a homemade explosive device at the airline counter Monday’s statement identifying the suspect said that after Mr Zhou graduated from high school in his native Guizhou province a decade ago, he worked in factories in various parts of the country The explosion delayed the takeoff of some international flights on Sunday but appeared to cause minimal disruption, according to local authorities and airline staff Authorities stepped up security at the airport departure hall after the incident, according to photos posted online and airline statements Brazil’sBankChief SetsAmbitiousGoal BY PAULO TREVISANI BY KEJAL VYAS AND TIMOTHY PUKO Worker Accused in Shanghai Explosion BRASÍLIA—Brazil’s central bank inaugurated a new leader to deal with an old challenge: taming stubborn inflation amid a shaky economy and political chaos In an hour-long ceremony on Monday at the bank’s imposing building, private-sector economist Ilan Goldfajn took over the post from Alexandre Tombini, and pledged to meet the central bank’s 4.5% annual inflation target, without giving a timeframe Mr Goldfajn, 50, will have to it without raising interest rates, the standard weapon for cooling inflation Brazil’s benchmark interest rate, the Selic, already stands at 14.25%, one of the highest rates in the world Increasing rates further could be dangerous for an economy that contracted by 3.8% last year and is expected to shrink as much in 2016 May data showed prices rising at a 9.3% annual pace “The current scenario is challenging,” Mr Goldfajn said in his first speech in the job “It is important to manage expectations.” His predecessor was an appointee of Brazil’s suspended President Dilma Rousseff and had held the job since January 2011 On his watch, Brazil never once met its 4.5% inflation target, even as the economy slumped Mr Goldfajn was appointed by acting President Michel Temer, who will serve out Ms Rousseff’s term if she is ousted A U.S.-educated economist, for the past decade he led the economic-research department at Itaú-Unibanco, Brazil’s largest private-sector bank Inflation has defied the central bank, which has raised the Selic 16 times since early 2013 only to see price increases breach double digits late last year and peak at 10.7% in January The Selic has remained at 14.25% since last July Monetary policy has been undermined by government spending The budget gap grew to 10.1% of gross domestic product by April, from 2.5% in January 2011, when the leftist Ms Rousseff was inaugurated and nominated Mr Tombini to lead monetary policy “In the end, [Mr Tombini] never met the target…but the government was focused on spending,” said economist José Carlos Oliveira, from the University of Brasília “There was little the central bank could do.” In a weekly survey of economists released Monday by the central bank, the median forecast for inflation in 2016 was 7.2% On the other hand, the same survey has consistently shown a stable 5.5% forecast for next year, an indication that many economists believe prices will lose steam even if Mr Goldfajn doesn’t make many changes “What is important now is to regain credibility,” said Ignácio Crespo, an economist at Guide Investimentos brokerage firm in São Paulo, who doesn’t see much room to start easing “I think he will only cut rates later this year Any surprises will come on the hawkish side.” Mr Goldfajn insisted that his goal was to reach the center of the target, using the 2.5%-to-6.5% tolerance range only to absorb shocks “The goal is to fulfill the target completely, eyeing its central point,” he said “There is no sustainable economic growth without stable inflation.” C8 | Tuesday, June 14, 2016 THE WALL STREET JOURNAL HEARD ON THE STREET Email: heard@wsj.com FINANCIAL ANALYSIS & COMMENTARY LinkedIn Gets a Big Promotion Window Shopping Microsoft use of cash Acquisitions net of cash Year to date Stock buybacks $40 billion 30 20 10 2010 Note: Fiscal year ends in July Sources: FactSet, Dealogic THE WALL STREET JOURNAL years, the company has gotten more selective Most of the 32 deals done in that time have been smaller companies The exception was the $2.5 billion acquisition of the maker of the “Minecraft” videogame that turned out to be a rather canny use of trapped overseas cash Still, buying LinkedIn is a gamble and no bargain The stated value is about 37% of Microsoft’s last reported net cash balance Microsoft says RICHARD B LEVINE/ZUMA PRESS Any job promotion can be considered an act of faith—a gamble that the recipient eventually will make the effort and money worthwhile Hence Microsoft’s acquisition of LinkedIn for $26 billion, announced Monday This is the largest acquisition on record for the world’s largest software company But Microsoft isn’t buying much of a top-line contribution LinkedIn’s trailing 12-month revenue is less than 4% of Microsoft’s Rather, Microsoft thinks adding a professional social network to its business-focused software offerings will present new opportunities that will help the company further wean itself from its legacy on personal computers That is a big bet at this price, though not an unreasonable one It is certainly less dicey than buying a dwindling mobile-phone business, or trying to buy a shrinking internet portal Microsoft’s deal history may not earn it the benefit of the doubt, but, under new management for the last 2½ it will fund the deal mainly with new debt, which will bring down its net cash balance further The price tag of $196 a share is about 54 times projected forward earnings for LinkedIn, excluding stock-based compensation and other items It helps that there is little overlap or integration risk and that Microsoft had good timing LinkedIn’s value sank following a disappointing earnings report in February OVERHEARD The multiple implied by the buyout price is 23% below LinkedIn’s average the year before its winter selloff Through LinkedIn, Microsoft gains access to a growing social network with a diversified business model and scarcity value, too LinkedIn had over 433 million members recently, up 19% year over year Microsoft believes that it can use this base and LinkedIn’s services geared toward recruiters, marketers and sales professionals to enhance the value of its own suite of business-focused software and cloud services This is something it needs to do, as these offerings face growing competition from Google, Amazon.com and other players All that will take some time to play out, so it helps that Microsoft also plans to maintain its cash return program, which includes a generous dividend yield of 2.8% Promoting LinkedIn to such a key role carries risks But chances are it will get the job done —Dan Gallagher Microsoft saw value in one social network Investors are hoping that means good things for another Twitter’s shares climbed nearly 4% Monday after the software giant announced it was buying LinkedIn for $26.2 billion The idea is that Twitter could be the next beleaguered social-media platform to get bought But investors shouldn’t read too much for Twitter into LinkedIn’s deal While both are social networks, they are fundamentally different businesses Unlike LinkedIn, which gets most of its revenue from recruiters, Twitter is a play on mobile advertising It competes more with the likes of Facebook and Google than with LinkedIn Indeed, LinkedIn’s unique niche helps explain its strategic appeal to Microsoft Granted, Twitter shares had fallen 39% year to date as of Friday A buyer still could emerge since it lacks a controlling shareholder, but that won’t be because LinkedIn is off the market European Banks Find Their Penalty Period Is Lingering The lingering effects of big banks’ penalties for past sins, it turns out, could last another decade That might seem like forever to bank investors who thought that billion-dollar settlements created a clean slate But the end result should protect them from future blunders In different ways, banks such as UBS of Switzerland, Deutsche Bank of Germany and Lloyds Banking Group in the U.K all could be hit hard by proposed changes in capital rules related to operational risks, covering everything from regulatory fines and lawsuits to computer failures and rogue traders Big banks already take charges for these risks, but global rule makers don’t like the complexity and wide variation in the models banks use to set them The Basel Committee, which coordinates global banking regulations, wants to standardize the charges based on the size of a bank’s business and the amount of losses it has taken due to operational errors over the past 10 years A bank’s recent operational losses act as a multiplier The greater the losses, the more punitive the multiple Deutsche Bank, for example, expects a big increase in its risk-weighted assets due to the change, which makes sense as it has taken some of the heaviest fines among peers and is still large and diversified For some banks, the proposal is particularly galling because their biggest fines and compensation costs relate to products they ditched long ago Whether a bank still does a certain type of business or not, the extra capital charges applied for past failings are meant to reflect the risks in a management culture that allowed mistakes to happen UBS already carries more capital than other banks for operational risks and is worried about how long it will have to keep doing so The fines it still is waiting to settle relate to U.S mortgagebond business that it stopped doing soon after the crisis When the last settlement is eventually paid, it will remain in the group’s capital calculations for another decade At Lloyds, customers have until 2018 to claim compensation for it improperly selling them “payment protection insurance.” The bank already has paid redress of more than £16 billion ($22.8 billion) Lloyds stopped selling PPI in 2010, which means the last compensation payments could linger in its operational risk charges almost 20 years after the last product was sold There is a chance that Basel will water down these proposals slightly Analysts at Barclays expect some kind of a limit on the charge, for example It seems right that penalties have some lasting effect on capital, a reminder for management not to make similar mistakes in whatever business the bank now does If more of a bank’s capital is guarding against operational risks rather than profit-making business, shareholder returns will be damped But it should make those returns more reliable —Paul J Davies IT ’S NEVER “JUST BUSINESS.” You put your heart, soul and vision into building your company Which means every business decision you make is always a personal one At Northern Trust, we put our expertise toward aligning your personal and business goals like never before So you can build the business – and life – you’ve always envisioned ACHIEVE GREATER WEALTH PLANNING \ BANKING \ TRUST & ESTATE SERVICES \ INVESTING \ FAMILY OFFICE Call 866.803.5857 or visit northerntrust.com /Envision Member FDIC © 2016 Northern Trust Corporation WSJ.com/Heard Diminished Expectations In China The worry with China is that it may be time to start worrying again A trove of official data released Monday showed the economy is, at best, moving sideways, if not sputtering Signs of big improvement China bulls seized on recently are harder to find The brief bounce in the industrial parts of the economy that excited commodities markets is fading Fixedasset investment—spending on things like property and factories—grew just 7.4% in May from a year earlier, a sharp drop from the 10%plus growth in the first four months of the year The slowdown was particularly acute for private enterprises, notes Capital Economics Concerning data also emerged from the all-important housing market Housing sales and new starts grew in May, but at a reduced pace The nascent property boom, driven by looser lending, may be ending as local governments clamp down on overheated real-estate markets China hasn’t cut benchmark lending rates since October, nor has it reduced banks’ reserve-requirement ratio since February Growth in central-government spending has slowed And a local-government bond-swap program was less active in May than previous months Having not made any overt moves to ease recently, policy makers have several options The trouble is, with debt and overcapacity high, all these choices face diminishing returns compared with past years The best investors can hope for is a Chinese economy that continues to slow slowly But even that may be asking too much —Alex Frangos HEALTH & WELLNESS Learning by Laughing Golf Wins the War on Trees A baby’s happy educational tool RESEARCH REPORT | D3 SPORTS | D5 THE WALL STREET JOURNAL © 2016 Dow Jones & Company All Rights Reserved Tuesday, June 14, 2016 | D1 Beat Back the Self-Doubt Diets With Very Limited Calories May Treat Illness BY SUMATHI REDDY Practice, Practice, Practice Ruminative thoughts have created strong neural circuits so you will need to practice a new thought over and over Set a time each day to write a ‘journal dump’ of negative thoughts and your refutation DOMINIC BUGATTO FOR THE WALL STREET JOURNAL Look for Supporting Evidence Challenge what you tell yourself when you ruminate Turn the negative thought into a question: ‘I am a loser?’ Then look at the answer Typically, you will find little evidence Create an Imaginary Friend Exaggerate the Thought This friend has the same traits and experiences as you Then imagine your friend telling you that she has the same ruminations And refute her Tell her why she is great Give her advice Then take that advice Tell yourself you are the biggest loser on earth The absurdity will be striking, and you will rattle your neural pathways Also, laughter is a great healer We lose time to negative thoughts; Surprisingly simple steps can help you reframe and feel more positive BY ELIZABETH BERNSTEIN Think of the last time you told yourself something critical or negative Then think of the last compliment you gave yourself Which is easier to remember? Many of us—whether due to genetics, brain chemistry, our experiences or coping skills— tell ourselves way too many negative thoughts We ruminate, thinking the same negative, unproductive thoughts over and over Each thought is made up of a complex pattern of activity between proteins and other chemicals, gene expressions and neural connections in our brain The more we have a thought, the stronger this circuit grows A well-developed thought “is like a ski track in the snow The more you ski down a path, the easier it is to go down that path and not another,” says Alex Korb, a neuroscientist and author of “The Upward Spiral: Using Neuroscience to Reverse the Course of Depression, One Small Change at a Time.” With intent and practice, you can create another path Psychologists call the technique cognitive reappraisal The result will be stronger neural networks devoted to positive thoughts, or a happier brain People who this have better mental health and more life satisfaction, and even better-functioning hearts, research shows This technique is at the heart of Cognitive Behavioral Therapy practiced by many psychologists The good news is that you can practice it at home Performing a cognitive reappraisal isn't turning off your negative thoughts—that is almost impossible to without replacing them with something else It is also not about turning untrue negative thoughts into untrue positive ones The goal is to reframe your thoughts constructively, so they are based in reality “I tell clients to think like a scientist,” says Hooria Jazaieri, a licensed marriage and family therapist in San Jose, Calif., and researcher in the psychology department at the University of California, Berkeley, who studies emotion regulation “You are using your observations and descriptions about yourself non-judgmentally, observing and describing the facts.” Here are the steps Be Aware You need to know your thoughts to change them Learn to notice when you are ruminating Remind yourself that this is a waste of time Please see THOUGHTS page D2 Calorie-restrictive diets are showing promise to potentially treat an array of medical conditions Scientists have investigated the effect of extremely low-calorie diets on a range of illnesses, from autoimmune diseases such as multiple sclerosis to asthma Other researchers have evidence the diets may help to prevent diabetes and cardiovascular disease, and studies are under way to determine if they can extend survival in cancer patients and reduce side effects of chemotherapy “Periodic fasting shows the most promise in getYOUR ting rid of bad cells HEALTH and making good ones for regeneration and can be applied to all kinds of diseases,” says Valter Longo, director of the Longevity Institute at University of Southern California, who has been investigating severe calorie restriction’s effect on multiple sclerosis “Autoimmunity is one of the things where we’re going to see the most dramatic effects.” Calorie restriction is most often associated with weight loss such as the popular 5:2 diet, which calls for eating sparely for two days and normally for five Researchers say weight loss may be an added benefit to extremely low-calorie diets, which could add potential new treatment options for various conditions In a new study, Dr Longo and colleagues found severe calorie restriction in mice reduced symptoms of multiple sclerosis, a neurological disease, and eliminated symptoms altogether in 20% of the animals There was also regeneration of myelin, a protective sheath surrounding nerve fibers in the brain and spine that are damaged in patients with MS The mice ate a very low-calorie, low-protein diet for three days a week for three weeks Dr Longo refers to this as a “fasting-mimicking diet” because it induces the same positive changes in the body as prolonged, strict calorie restriction Dr Longo also tested the diet with 48 human patients with MS, and found promising results The patients were divided into three groups One group ate 300 to 400 calories a day for one week, followed by six months of a Mediterranean diet Another group ate six months of a ketogenic diet, a highfat diet often used to help treat difficult epilepsy cases in children And a third control group ate a normal diet similar to what they had been previously eating Patients in the calorie-restricPlease see DIET page D2 BY BETSY MCKAY Hampton, Ga Persuading people to get a colonoscopy shouldn’t be this hard Colon cancer is the secondleading cause of cancer death in the U.S for men and women combined, yet one in three adults isn’t getting tested as recommended, health officials say Many are afraid or grossed out by the procedures To overcome their resistance, health officials and educators now are resorting to extreme measures, displaying a large inflatable replica of a human colon at health fairs, festivals and other events Letitia Price had a gut feeling when she arranged for an inflatable colon to appear at a cancer fundraising relay one Friday evening in an Atlanta suburb From the outside, the 20-foot-long inflatable tunnel looked like a children’s bouncy house Inside, the pink vinyl walls were streaked with red arteries and dotted with bright, round polyps “Awesome,” Ms Price, a physician assistant, said “When you see it, then you realize what’s going on inside your body,” she added, darting inside for a selfie The blowup model is part of a Big Colon Tour hitting 50 cities this year Visitors streamed in one end and out the other, while a health educator pointed out the stages of disease—from a healthy colon at one end of the tunnel to advanced colon cancer at the other end Ms Price and other health professionals say they have few options but to turn to extreme props and spokes-organs to convey medical messages Smartphone and social media-addicted consumers have too much information to digest these days; creative tactics cut through the clutter to educate and entertain “You have to have something The banners and flags are not good enough anymore,” said Claudio Brunstein, a blood and marrow transplant physician at the University of Minnesota He ordered a custom-made bone-marrow tunnel, 10 feet long by 12 feet high, for a fundraising event and celebration for a bone-marrow transplant pro- gram in July A staff member got the idea for the tunnel after seeing the inflatable colon, said Dr Brunstein, who wants to use it to explain to patients and their families the bonemarrow transplant process “Every event is known for something,” he said “We hope our bone-marrow event will be known for the bonemarrow tunnel.” Henry the Hand, an inflatable costume, was the brainchild of a family medicine doctor in Cincinnati; it promotes four principles of “hand awareness” to prevent the spread of infectious disease (“Wash your hands when they are dirty and BEFORE eating; DO NOT cough into your hands; DO NOT sneeze into your hands; Above all, DO NOT put your fingers into your eyes, nose or mouth.”) “We’re going to save the country billions of dollars!” said the doctor, Will Sawyer, who calls himself an “infection prevention specialist.” The hand, sometimes worn at events by his 25-year-old daughter, makes appearances around the country in schools and Please see INFLATABLE page D2 JONATHAN BACHMAN/AP IMAGES FOR BAYER + COLON CANCER ALLIANCE A Giant Inflatable Colon Tries to Raise Awareness Visitors inside the inflatable colon featured at the Colon Cancer Alliance’s Big Colon Tour in Baton Rouge, La., in May THE WALL STREET JOURNAL D2 | Tuesday, June 14, 2016 HEALTH & WELLNESS BRENT CLARK/AP IMAGES Signs inside an inflatable colon, above, indicate the stages of colon disease; below, the 20-foot-long inflatable colon that the Colon Cancer Alliance brought to Bailey Park, in Winston-Salem, N.C., as part of the Big Colon Tour DIET Continued from the prior page tive/Mediterranean-diet group reported the most improvements in their health and quality of life An adult woman needs 1,600 to 2,400 total calories a day, depending on physical activity, age, height and weight, according to the U.S Department of Agriculture’s dietary guidelines For men the calorie range is from 2,000 to 3,000 a day Dr Longo’s study was published in June in the journal Cell Reports His lab is currently setting up clinical trials for other autoimmune diseases, including Crohn’s disease and Type diabetes A Los-Angeles based company founded by Dr Longo, called L-Nutra, recently started selling a commercial version of a five-day fasting-mimicking diet with more calories allowed a day called ProLon Dr Longo is chairman of the L-Nutra board but says he receives no financial benefit from the company as all shares will be donated to a nonprofit foundation he created to research on calorie-restrictive diets Many people would have difficulty consuming as few as 400 few calories a day for a week, so researchers are testing variations Dr Longo is working on another study with MS patients eating a daily diet of 800 to 1,100 calories and with more cycles to the diet He has tested the fasting-mimicking diet in previous research that found it extended lifespan and improved metabolism and cognitive function in mice, and reduced risk factors for diabetes, cardiovascular disease, cancer and overall aging in humans Ellen Mowry, associate professor of neurology and epidemiology at Johns Hopkins University, in Baltimore, says Dr Longo’s mouse data in the MS study are particularly interesting because the researchers were able to evaluate the effect of the diet on the animals’ spinal-cord tissue She said the data in the human portion of the study is harder to interpret as it is difficult to determine if the results are related to the calorie restriction or differences in diets Dr Mowry also is researching calorie restriction’s effect on MS, but doesn’t work with Dr Longo Experts say calorie-restrictive diets should be avoided in young children, pregnant women and the frail elderly Typical side effects include a minor headache on day two or three of calorie restriction Strenuous exercise should be avoided and calorie-restrictive diets that consist of multiple days should be followed by a day of light feeding before a normal diet is resumed Another area of investigation is 1,080 Minutes a week PURSUING NEW BUSINESS LEADS Continued from the prior page hospitals to promote hand hygiene Medical Inflatable Exhibits Inc., a Houston company, rents inflatable brains, hearts, lungs and a 50foot long human body to hospitals and schools, said Lauren Hill, founder and president “We found there is a real need in schools for anatomy education,” she said “There’s so much to learn in all of these organs,” she said Makers of the props say they’re flush with orders Sales of healthrelated products are rising about 20% a year at Landmark Creations, a Burnsville, Minn., maker of custom inflatables, according to its president, Tom Meacham Landmark has made about 300 colons, as well as Henry the Hand, the bone-marrow tunnel, a prostate and a woman’s torso showing normal and diseased breast tissue Landmark made its first inflatable colon several years ago as a marketing tool for a nutritional supplement company The 80-footlong tunnel attracted interest, so the company developed a smaller, user-friendly version, he said Now, Landmark manufactures inflatable colons for the Colon Cancer Alliance, which rents and sells them in three sizes and sometimes brings a giant inflatable toilet-paper roll along to events Men and women at average risk should be screened for colon cancer starting at age 50 anyone with a personal or family history of colon cancer, inflammatory bowel disease or other risk factor should be screened before 50 or more often, according to the American Cancer Society Health educators calorie-restriction’s effect on asthma “Previous studies have shown intermittent fasting seemed to prevent asthma exacerbations but I think it’s a pretty tough lifestyle thing to do,” says Michael Sack, chief of the cardiovascular and pulmonary branch of the National Heart, Lung and Blood Institute As a result research groups are also exploring interventions that have similar effects but are easier to maintain, he says, such as Dr Longo’s fasting-mimicking diet Dr Sack and other research groups are looking at a vitamin B analog that may also mimic the fasting effect in the body, he says Mark Mattson, a senior investigator and chief of the neuroscience laboratory at the National Institute on Aging, is co-creator of the 5:2 diet He says he has tested this and similar calorie-restrictive diets on mice and in humans and found it extends longevity in mice and improves a number of health markers in humans There is research suggesting that calorie restriction two days a week may lower the risk of developing diabetes and cardiovascular disease, Dr Mattson says Such a diet also lowers blood pressure and reduces resting heart rate, which improves the ability of the heart to deal with stress, he says “There are a number of ways in which fasting seems to benefit different organ systems,” he says THOUGHTS Continued from the prior page Write down the thoughts Identify what triggered them Be specific: “My boss came in to talk to me and I started to worry that he hated my work and I am a loser.” “This brain dump clears your mind of the ruminative thoughts,” says Paul Hokemeyer, a psychotherapist in New York and Telluride, Colo are trying to reach the goal of increasing colon-cancer screening rates to 80% of adults age 50 and older, up from roughly two-thirds at present They also want to reach younger adults, some of whom are higher risk Many people put off colonoscopies because they fear the procedure, which involves being put to sleep while a scope is inserted inside the rectum and colon They often dread the “prep” beforehand, which involves fasting and drinking several quarts of a drink that flushes out the system The Colon Cancer Alliance launched the Big Colon Tour four years ago to take the focus off the discomfort many feel about coloncancer screening and make them aware that this form of cancer is preventable, said Michael Sapienza, the organization’s chief executive With Bayer as a sponsor, the tour this year is taking colons to 5K races, community fairs and medical centers around the country “To get through the noise, we have to make it funny,” Mr Sapienza said A giant inflatable colon helps break taboos, said Diana Redwood, a senior epidemiologist with the Alaska Native Tribal Health Consortium, which bought its own spokes-colon from Landmark and dubbed it Nolan the Colon Nolan, whose other suggested names included Tyrannosaurus Rectum and Inside Passage, appears at health fairs and other events around the state “It definitely changes the tone of the conversation,” Dr Redwood said Native Alaskans have high rates of colon cancer The colon helped increase visitors’ knowledge about colon cancer, intent to get screened and comfort level in talking about screening, Dr Redwood and her Dr Valter Longo, director of USC’s Longevity Institute, found in a recent study that severe calorie restriction in mice reduced symptoms of multiple sclerosis “The bottom line is, intermittent fasting increases the resistance of cells in the brain and body to stress.” Dr Mattson is currently doing a study looking at the effects of calorie restriction in obese, elderly people at risk for Alzheimer’s disease to see if it will improve their cognitive function Ongoing research also involves cancer patients Dr Longo is conducting one of a series of clinical trials to see if lower-calorie diets can help make chemotherapy more effective at killing cancer cells “It’s all about the body fixing itself,” he says thoughts into a habit in a relatively short time A November 2014, study in the journal Behaviour Research and Therapy showed that people who practiced Cognitive Reappraisals as part of Cognitive Behavioral Therapy were able to significantly reduce their negative emotions in 16 weeks The study was led by Philippe R Goldin, a research scientist at Stanford University at the time, and Ms Jazaieri and included 75 Look for Supporting Evidence READING WHAT’S NEWS You invest a lot of time to get ahead Why not invest a little to stay there? The What’s News app gives you the essential information to drive your ambition From markets and finance to politics and opinion, What’s News keeps you in control in just a few minutes a day NOW ON ANDROID A lot of the things people tell themselves when they ruminate are unBONDS: ON RELATIONSHIPS true You need to challenge your beliefs Turn the negative thoughts into questions: “I am a loser? I fail at everything?” Then try to supply answers You probably won’t find many Next, look for evidence to the contrary What are your successes? Did you get a promotion last year? Are you a good parent? Write down a long and specific list “Writing strengthens the memory,” says Jeffrey Borenstein, president and CEO of the Brain & Behavior Research Foundation in New York Examine the evidence Maybe you don’t succeed all the time; no one does But you might succeed much more than you fail The goal is to see yourself more accurately, says Steve Orma, a clinical psychologist in San Francisco, and author of “Stop Worrying and Go to Sleep.” Practice, Practice, Practice © 2016 Dow Jones & Co., Inc All rights reserved 2DJ3761 Your new thoughts won’t take hold over night You’ve spent years being judgmental and critical of yourself Those thoughts have very well-connected neural pathways You can, however, turn your new The ProLon diet is a low-protein, low-carbohydrate, high-fat, plant-based diet that consists largely of soup, kale crackers and olives for five days It includes 1,150 calories the first day, and 750 calories on days two through five The product, which launched this spring, costs $299 for a five-day package It is available by prescription only “We feel that the health benefits this product confers are best interpreted through a healthcare practitioner,” says Kirk Haney, L-Nutra’s acting president and chief executive “They’ll know who this will be best for.” told you he was telling himself the same irrational things you tell yourself, you’d have no trouble telling him he is wrong Imagine that you have a friend who is exactly like you in every respect Give him a name Then pretend he is telling himself the same destructive thoughts you tell yourself How would you refute him? What evidence would you give that his thinking is wrong? Listen carefully to what you are telling your friend Write it down Take this to heart Exaggerate the Thought GETTY IMAGES Minutes a day colleagues found in a survey of 880 adult visitors The survey was published in Preventing Chronic Disease, a journal of the Centers for Disease Control and Prevention A few other studies have had similar results In a smaller study, researchers at Seattle’s Fred Hutchinson Cancer Research Center found visitors to health fairs featuring inflatable colon displays learned more about colorectal cancer and screening than visitors to fairs that had only brochures and other information But the difference wasn’t statistically significant, and neither group retained the information a month later, according to the study, published in BMC Public Health, an open access journal The inflatable colon is subject to hazards similar to those affecting bouncy castles in YouTube videos Marlene Smith, a nurse in remote Kotzebue, Alaska, said she and a colleague had to weight down a junior version of Nolan using rocks and a cooler and tie it to a fence after it nearly blew into the town harbor on the Chukchi Sea a couple of years ago “He was a good feet in the air,” she said Several visitors signed up for colonoscopies, which are provided by doctors who fly into the area In Hampton, outside Atlanta, the visiting colon went down well Four-year-old Evan Hanie beat several polyps with his fist as his mother, Kristin, pushed a stroller with his 17-month-old sister “He said the polyps are really bad, so he has to take care of people and get rid of them,” she said Visiting the colon reminded her that she was due for a screening, she said, because she is at increased risk of colon cancer JOHN SKALICKY/USC BETSY MCKAY/THE WALL STREET JOURNAL INFLATABLE ‘If you want to get in shape physically, you can’t just work out once It’s the same with the mind.’ participants This takes practice Keep writing down your negative thoughts every time you have them—and challenging them It is also helpful to have some go-to affirmations to write down: “I am smart.” “I am a good parent.” The goal is repetition “If you want to get in shape physically, you can’t just work out once,” Dr Orma says “It’s the same with the mind.” Create an Imaginary Friend We’re often nicer to our friends than we are to ourselves If a friend Follow your negative thought to its extreme conclusion You think you’re a loser? Tell yourself you are the biggest loser in the country If there was a loser Olympics, you’d win 10 gold medals Time magazine would put your face on the cover, under the headline: “Biggest Loser on Earth.” “You’re going for the laughter,” says Dr Orma That alone will help you feel better The exaggeration also helps underscore the absurdity of your negative thoughts Shift Lanes If a huge truck pulled in front of you dangerously on the highway, you’d switch lanes quickly You need to this when negative thoughts arise Turn your mind immediately to something else You can even use a hand signal like you would when biking Have some go-to topics that your mind finds interesting: Think about a problem you need to solve at work, plan a vacation, walk yourself mentally though a skill in a hobby you love Your mind cannot hold two thoughts at once Write to Elizabeth Bernstein at elizabeth.bernstein@wsj.com or follow her on Twitter, Facebook or Instagram at EBernsteinWSJ THE WALL STREET JOURNAL Tuesday, June 14, 2016 | D3 HEALTH & WELLNESS From Financial Deal-Maker to Professional Triathlete When she worked on Wall Street, Sarah Piampiano put in 90plus hour workweeks, smoked two packs of cigarettes a day and often grabbed a few hours’ sleep a night at the office Today, Ms Piampiano trains for 40 hours a week, is addicted to energy gels and electrolyte drinks, and on most nights gets 10 hours of shut-eye Her transformation, from a driven deal-maker at HSBC to driven profesWHAT’S YOUR sional triathlete, WORKOUT? began with a friendly wager in June 2009 A friend bet Ms Piampiano that she couldn’t beat him in the Mooseman Triathlon in Alexandria, N.H., an Olympic distance race made up of a 0.93-mile swim, a 24.8-mile bike ride and a 6.2-mile run Ms Piampiano had been a Division I ski racer and a cross-country running talent at Colby College, in Waterville, Maine After graduating in 2002, she let exercise slide to focus on her career With no training at all for the New Hampshire event, she smoked her friend in the triathlon and got hooked on the sport Three months later, she kicked her smoking habit and competed in a triathlon in Miami, placing first in her age group using her brother’s 20-year-old bike “That’s when I realized I was pretty good,” Ms Piampiano says She started working with triathlon coach Matt Dixon in 2010, and in 2011 asked to reduce her hours at HSBC to 30 a week so she could spend more time training That year, she was the top American amateur to finish the Ironman JASON HENRY FOR THE WALL STREET JOURNAL (2) BY JEN MURPHY Sarah Piampiano, with her Cervélo Cycles P5 time-trial bike, at left, competed in 10 Ironman races in 2015, finishing No at the Ironman World Championship in Hawaii At right, she runs for one to two hours most mornings on the trails on Mount Tamalpais near Mill Valley, Calif., as part of her training regimen World Championship in Kona, Hawaii, with a 2.4-mile swim, a 112mile bike ride, and a 26.2-mile run Recognizing her ability, Mr Dixon persuaded her in 2012 to quit her job and turn pro Now, Ms Piampiano, 35, lives and trains in San Rafael, Calif While racing the Ironman Texas in 2014, she got a stress fracture in her femur and spent the rest of the year in rehab In 2015, rather than have her slow down, Mr Dixon encouraged her to race more “It was a way to boost my confidence and resilience,” Ms Piampiano says In 12 months, she competed in 10 Ironman races, including a seventh-place finish at the Ironman World Championship in Hawaii “It was an intense year,” she says “I wasn’t home for more than two weeks at a time.” This year, she plans to stay closer to home, focusing less on racing and more on technique and strength On April 17, Ms Piampiano was the first-place woman in the Ironman 70.3 New Orleans, a half Ironman covering a 1.2-mile swim, a 56-mile bike ride, and a 13.1-mile run She is set to compete June 26 in the Ironman 70.3 Coeur D’Alene Rules for Refueling During a Workout Whether you’re running a 5K race or competing in an Ironman, your fuel strategy should focus on carbs, not calories, says Jamie A Cooper, author of “Complete Nutrition Guide for Triathletes” and founder of Competitive Nutrition Systems, a Lubbock, Texas, consulting company “The general rule of thumb is to try to get at least 60 grams of carbohydrates per hour, which is roughly around 240 calories an hour, when you are exercising for an hour or longer,” says Dr Cooper, who lives in Athens, Ga And the ideal carbohydrate isn’t a whole-grain bagel or a peanut butter and jelly sandwich “Those are healthy foods, but you actually want to avoid complex carbohydrates and fiber during workouts because they slow down digestion, which means it takes longer for your body to get nutrients,” she says Simple sugars—the ones trendy diets tell us to avoid because they are less healthy, like white bread—are actually an ideal source of workout fuel, she says Electrolytes and fluids are the other keys to fueling during a hard workout While sports drinks and energy products are designed to have the ideal balance of carbs and electrolytes, Dr Cooper says, some of her clients prefer regular foods She suggests a white bagel with jelly and a banana before a competition, and white bread with honey or low-fiber salted crackers during a race Preworkout, she suggests a meal rich in carbohydrates and low in fat, fiber and protein Post-workout, she suggests 16 to 20 grams of protein, along with carbs, to help with muscle recovery “Low-fat chocolate milk is a great recovery drink,” she says For those new to training and racing, she suggests setting an alarm to go off every 15 minutes as a reminder to drink water and take in fuel Jen Murphy in Idaho “My big goal for 2016 is to be on the podium at Ironman Kona this October,” she says She is currently ranked seventh in the world Ironman standings The Workout Ms Piampiano’s days are a cycle of eat, work out, recover, repeat Morning workouts focus on intensity, and afternoons on endurance A typical day starts with a 30-minute warm-up run and core work, followed by an indoor swim of 90 minutes to two hours She transitions from swimsuit to sneakers and goes right into a one- to two-hour run Some days she’ll an interval workout on the treadmill, other days she’ll tackle hills outside From 9:30 a.m to 11 a.m., Ms Piampiano trains with strength coach Brendon Rearick at Move-SF studio, in San Francisco He and Mr Dixon work closely to develop complementary workouts using kettlebells and resistance bands Afternoon sessions might include a two- to four-hour bike ride or a 90-minute outdoor swim Twice a week she goes for a 90minute massage “When my back is tight, it limits the rest of the way my body moves,” she says Other days she spends an hour with her chiropractor, who performs active release techniques, which manually break up scar tissue in the muscles Ms Piampiano tries to get eight to 10 hours of quality sleep at night “By six, I put away all electronics,” she says She sneaks in a 30- to 45-minute nap three or four times a week The Diet On average, Ms Piampiano eats 10 meals and snacks a day “I wake up at 4:30 and the first thing I is eat a half of a banana and a tablespoon of almond butter,” she says She tries to eat 100 calories every 20 minutes during her morning swim and running workouts Her second breakfast is two hard-boiled eggs and a half-cup of cold-soaked oats with almond milk, pecans, walnuts and bananas “I limit carbs to the morning,” she says A snack might be three carrots, two tablespoons of almond butter or a protein shake Lunch might be egg salad or quinoa and grilled vegetables Late afternoon she has fruit, nuts or half of a Clif Bar She refuels during endurance workouts with trail mix or Clif Organic Energy Food Dinner is steak or fish, grilled vegetables and a big salad If she has a big workout the next morning, she will drink a protein shake or eat mash—a concoction of oats, jam, almond butter and applesauce—before bed A New Clue to Why Women Outlive Men BY ANN LUKITS GETTY IMAGES Specialized immune cells, called natural killers, were more active in women pression of a protein marker of NK cell activity Women also had more B cells, which produce antibodies Caveat: The study was relatively small and sex hormones weren’t measured u Sunburn Risk: After a brush with nonmelanoma skin cancer, most people are careful to protect themselves from sun because of an increased risk of getting cancer again But despite taking more steps for sun protection than people without skin-cancer history, the two groups had a similar risk of getting sunburned, according to a study published online in the Journal of the American Academy of Dermatology Sunscreen was the most common method of sun protection, but it may not have been adequate protection on its own, or applied too thinly or inconsistently, the study said Other methods of sun protection, including staying in the shade and wearing long sleeves and wide-brimmed hats, were more effective at reducing sunburn rates, it said More than 5.4 million nonmelanoma skin cancers, the most common type of skin cancer, are treated in the U.S every year, and most are associated with exposure to ultraviolet radiation from the sun, according to the Skin Cancer Foundation Researchers at Johns Hopkins University in Baltimore pooled data on 34,919 people who participated in national health surveys in 2005 and 2010 Approximately 2.2% had a previous bout with nonmelanoma skin cancer Participants were asked about their sunprotection techniques, and if they had had any sunburns in the past 12 months Recent sunburns were reported by 29.7% of subjects with a history of skin cancer and 40.7% without cancer The difference wasn’t statistically significant after being adjusted for factors including gender, sun sensitivity, family history of skin cancer and geographical region Sunburns were more common in people under 40, with or without a history of skin cancer High rates of sunburn in young people are concerning as they have more years to accumulate harmful sun exposure, the researchers said Caveat: Information about sun exposure and sunburn severity u Resisting Snacks: It may be easier to resist snacking on a lowcarbohydrate diet than with a lowfat diet, suggests a study in Nutrition, Metabolism & Cardiovascular Diseases Levels of peptide YY, a hormone that reduces appetite by increasing feelings of fullness or satiation, were significantly higher in people who followed a 12-month low-carbohydrate diet compared with a low-fat diet The low-carbohydrate group also lost significantly more pounds Diets low in carbohydrates or fat are popular methods of weight loss, but it previously wasn’t clear if changes in body weight were due to restricted food intake or appetite-related hormones, researchers said From 2008 to 2012, researchers at Tulane University in New Orleans recruited 148 people, mostly women, with body-mass indexes in the obese range Subjects were 46.8 years old, on average, and none had diabetes or cardiovascular disease About half followed a diet with fewer than 40 grams (about 1.5 ounces) of carbohydrates a day The other half followed a diet that restricted total and saturated fats to less than 30% and 7% of daily calories, respectively No other dietary restrictions were imposed on the groups Body weight, cardiovascular risk factors and dietary compliance were assessed during followup visits at three, six and 12 months Blood samples were analyzed for peptide YY and ghrelin, a hormone that stimulates hunger and food intake Both groups received one-on-one and group counseling with a dietitian Average weight loss was 11.7 pounds in the low-carbohydrate group and 3.3 pounds in the lowfat group Changes in appetite-related hormones were unrelated to race, a separate analysis showed Caveat: Only two appetite-related hormones were assessed Dietary compliance was self-reported GETTY IMAGES A new study offers a possible clue to why women outlive men The researchers found that specialized immune cells called natural killer, or NK, cells were present in equal amounts in older women as in older men But the cells were more active in the women Better NK cell function could protect women against the increasing risk of illness and death in old age, according to the study, published in Mechanisms of Ageing and Development NK cells are a type of lymphocyte, or white blood cell, that attacks and destroys RESEARCH aging, infected and REPORT cancerous cells Reduced NK cell activity in old age is associated with higher rates of pneumonia, infectious diseases and cancer These illnesses are more prevalent in elderly men, the study said Previous studies have attributed gender differences in immune responses to sex hormones, but few have compared men and women in old age, the researchers said Hormone differences are less marked in older people but may underlie the gender differences in NK function, they said Non-biological factors such as occupation, risk-taking behavior, socialization, use of cosmetics and hair dyes could also influence gender differences in immune-cell function, the study’s principal investigator, Dr Charles T Lutz, director of molecular pathology at the University of Kentucky, added in an email From 2012 to 2014, researchers collected blood from 50 healthy men and women ages 70 to 90 years old A cell-separation technique identified NK cells, T cells and B cells, the main types of lymphocytes, and other components of blood Samples were cultured with human leukemia cells and other cells that stimulate NK cell activity Compared with men, more NK cells from women exhibited a greater destructive—or cytotoxic— response to leukemia cells, as indicated by significantly higher ex- wasn’t available Sun-protection practices were self-reported Making Infants Laugh Can Help Teach Them Skills Making infants laugh can help them learn complex skills, a study in Cognition and Emotion suggests The study found that 94% of infants who laughed at an adult performing a humorous demonstration involving a makeshift tool mastered the action immediately or after a few tries That compared with 19% of infants who watched the same demonstration but didn’t laugh and 25% of controls given a serious demonstration Positive emotions, such as laughter, can trigger the release of dopamine and endorphins in the brain, compounds associated with pleasure and mood that can also impact learning, the study suggests Laughing babies may also have higher social skills that enable them to easily interact with others in different situations, the researchers said Humor has been shown to enhance attention and cognition in children and adults, but the effects on infants’ perception and actions weren’t known, the authors said The study, in France, involved 53 infants, age 18 months old, who were randomly assigned to humorous and control groups The infants sat on a parent’s lap and watched an unfamiliar adult use a small cardboard rake to retrieve a toy duck that was just out of reach on a table This action was repeated eight times After the demonstrations, infants were handed the rake and encouraged to get the duck themselves All but one who laughed during the humorous demonstration retrieved the duck in less than a minute No gender differences were found Caveat: Infant learning may have been due to positive interaction with the experimenter and not laughter per se, the researchers suggested —Ann Lukits THE WALL STREET JOURNAL D4 | Tuesday, June 14, 2016 ARTS IN REVIEW MUSIC ART Between Wall and Eye Robert Irwin: All the Rules Will Change Hirshhorn Museum and Sculpture Garden Through Sept A Lukewarm Celebration BY DAVID MERMELSTEIN T Ojai, Calif he annual Ojai Music Festival has always thrived on focused eclecticism But achieving such balance over a long weekend is an art When it happens, disparate works, styles and musicians engage in something like a conversation Naturally, some voices speak louder than others, but the juxtapositions provoke connections and discussions; audiences leave stimulated, even educated Alas, the mix this time didn’t prompt the warm feelings engendered by recent festivals And that’s a pity because this one—which ran June through 12, and also travels in condensed form to Cal Performances in Berkeley, June 16 through 18—marked the festival’s 70th anniversary Further raising expectations was this year’s music director (a position filled annually), the provocative stage director Peter Sellars, only the second nonmusician (and the only nonperformer) to hold the job Yet save for a series of preconcert discussions, Mr Sellars’s normally overwhelming imprint was surprisingly faint The striking devices he generally employs indoors—exotic costumes, stylized movements, video elements and the melding of various, often indigenous, cultural traditions—were absent from this primarily outdoor festival, which, as always, was centered at the sylvan Libbey Bowl To some degree, the fault lies in poor planning, for until April, Mr Sellars was scheduled to direct the U.S premiere of “Only the Sound Remains,” a new opera in two parts by the celebrated Parisbased, Finnish composer Kaija Saariaho, in all but name the unequivocal star of this year’s festival Two afternoon concerts of Ms Saariaho’s lapidary chamber music, on Friday and Saturday, offered revelations She combines timbres that ought not to work together yet somehow do—like string quartet, whispers and electronics in “Nymphéa” or bass flute and baritone in “Sombre.” And though tension and anguish abound in her music, ugly sounds are anathema She prizes tonal beauty no less than Debussy, Ravel and Messiaen did But filling the gaps caused by the absence of her new opera created challenges Music composed and performed by Leila Adu, a New Zealander of Ghanaian descent, felt insubstantial, even banal Still, Ms Adu’s chamber piece “Alyssum” was beautifully rendered by the superb Calder Quartet and Bridget Kibbey, a harpist for the Brooklynbased International Contemporary Ensemble (ICE), increasingly the festival’s primary source for instrumen- Pepper And Salt THE WALL STREET JOURNAL “There’s nothing wrong with him He’s data-gathering for NSA.” talists Both the Calders (cherished members of the regional music scene) and ICE, a collective of gifted players dedicated to new music, found better material elsewhere at the festival—most obviously by Ms Saariaho, but also in the inventive, ear-tickling scores of Carla Kihlstedt, a violinist and singer, and Caroline Shaw, an alto with the thrillingly agile Roomful of Teeth The nine-person vocal group made its festival debut across five programs, including the finale, the U.S premiere of Claude Vivier’s “ritual opera” (read: oratorio) “Kopernikus” (1979), a work of occasional poise and frequent whimsy that ICE and Roomful of Teeth, under the baton of the latter’s Eric Dudley, delivered with rigorous commitment—not the easiest thing given that the piece is largely sung in an invented language la Lewis Carroll Vivier, who was murdered in 1983, a few weeks before his 35th birthday, was the only nonliving composer on the roster this year, an unprecedented occurrence at this festival More significant was his status as the only male composer featured To The 70th anniversary of this usually stimulating, eclectic festival didn’t live up to those of past years the festival’s credit, this laudable initiative in favor of women wasn’t flaunted, allowing the music to speak for itself “Kopernikus” seemed a logical bookend for what opened this year’s festival, the U.S premiere of Ms Saariaho’s chamber version of “La Passion de Simone,” a haunting tribute to the philosopher Simone Weil, who, like Vivier, died at age 34 Here, too, ICE and Roomful of Teeth collaborated with commendable unity of purpose Some credit for that cohesion goes to the gifted Portuguese conductor Joana Carneiro, who gave shape and impetus to a work that for all its glinting colors and beguiling motifs would be dolorous in less able hands The role of the work’s narrator (a fictitious sister for Weil created by the librettist, Amin Maalouf) was assumed by the rising soprano Julia Bullock, who lent the performance controlled vigor, tonal purity and fierce commitment Though Mr Sellars’s disappointingly minimalist, arbitrary production failed to enhance Thursday night’s performance, the occasion was still a triumph of demanding material transcending abundant obstacles Unfortunately, Ms Bullock’s other star turn, the premiere of “Josephine Baker: A Portrait” late Saturday night, was the festival’s biggest disappointment Claudia Rankine’s static and pretentious (to say nothing of longwinded) narration made dull one of the 20th century’s most vital figures, completely misreading the St Louis-born French entertainer’s place in history and the arts Ms Bullock sang well, but Tyshawn Sorey’s arrangements of Baker’s signature songs and his interstitial music were painfully monochromatic and enervated—everything Baker wasn’t What a misstep in a year when Ojai did so much else right to recognize the contributions of women in music Mr Mermelstein writes for the Journal on classical music and film I SMITHSONIAN INSTITUTION Kaija Saariaho’s ‘La Passion de Simone’ at the Ojai Music Festival Washington f not for its manifesto-like subtitle, “Robert Irwin: All the Rules Will Change” at the Hirshhorn would be a nearly perfect art exhibition, and a revelation in how to mount a museum retrospective With only 20 objects and one almost mystically minimal installation piece at the end, the show is a visual assertion of what makes Mr Irwin such an important and, on a very high level, enjoyable artist If contemporary curators have any sense, they’ll see this exhibition and then think twice about putting together another one of those wearyingly overstuffed, all-inclusive, down-every-avenue overviews of an artist’s career Of course, such an elegantly concise exhibition is possible only with an artist such as Mr Irwin—one who, although he is eloquently articulate (I’ve seen him charm groups of art students), makes his statements of aesthetic philosophy most profoundly in works of art This is an artist whose 60-year artistic trajectory has been single-minded in the best sense of the term As a young painter, Mr Irwin (b 1928) was caught up in the excitement of Abstract Expressionism—the freedom of not being tied to representational content, of letting paint be paint, and of letting each move of the brush be as personal as a handwriting stroke Sunny Los Angeles was not, however, sooty New York, and throwing off the yoke of figuration that was ensconced in galleries and museums on taxi-clogged avenues, with house-brush skeins of paint whipped across big canvases, could easily seem a little disingenuous to an L.A artist So in the late 1950s, Mr Irwin began to deconstruct the whole business of chest-beating abstract painting by making his works inches on a side He added Installation view of Robert Irwin’s ‘Untitled’ (1969) thick hardwood frames to indicate the paintings were to be held in the viewer’s hands (At the Hirshhorn, they’re displayed face up in a vitrine.) In 1960, he upped the size of his paintings to just over An artist who moved from the brashness of Abstract Expressionism to something more purely perceptual feet on a side, and stretched out his centralized cake-frosting clusters into cross-hatches of bright colors On the beauty front, they compare favorably, especially inch-forinch, with the Mark Rothkos and Clyfford Stills we know so well Rather quickly, Mr Irwin further distilled his paintings to a few freehand floating horizontal bars: first in contrasting hues, and then in the same colors as the backgrounds, making them perceivable only by paint thickness Around 1965, Mr Irwin began to make his paintings so visually minimal that the real work of art seemed to be a perceptual experience taking place in the space between the viewer and the object A good example is “Untitled” (1969), in which the spraypainted disc seems to hover in midair This has been his aesthetic territory ever since The perfection of “All the Rules Will Change” also comes from the way the Hirshhorn curator, Evelyn Hankins, has allowed the artist to control practically every visual aspect of the exhibition, from the floating rib walls (unanchored to the perimeter of the Hirshhorn’s famous doughnut configuration), to their color (a couple of tints of just-off white, and wisely cool instead of warm), to the font and placement of the wall texts (unobtrusive but still accessible and legible) In sum, the first part of the show, dedicated to surveying Mr Irwin’s work from 1958 to 1970 is about as good as a survey painting exhibition gets In 1970, Mr Irwin gave up making objects in favor of what he calls “conditional art”—site-specific installations—based on responding to particular settings The second part of the show consists of a single work, “Square the Circle” (2015-16), a masterpiece of reductive, site-specific installation art It’s a straight, flat, translucent “wall” of floor-toceiling nylon scrim, one of Mr Irwin’s favorite materials This chord (in geometry terms) affords hazy, barely perceptible glimpses of the curved architecture behind it—clearer or more obfuscated depending on where you stand and where you look It’s as austerely romantic as a schooner receding into the fog My favorite view (both of the piece and of the whole navigation of Mr Irwin’s work) is near the end, where you look up and see the ceiling ribs that are part of the museum’s original architecture curving into heavenly oblivion For the viewer who stops to take it all in, it’s unaggressive, sublimely pacific, and grand Mr Irwin’s work almost always seems to say, “The last thing I’ll is force you to look,” and for “Square the Circle,” the museum has posted polite signs near its borders urging viewers to relax and be open so that they won’t miss something The exhibition is Mr Irwin’s first museum survey outside his home turf in four decades, and it won’t travel It was made precisely and exquisitely for the Hirshhorn, and, really, it can’t travel That’s part of Mr Irwin’s lifelong point: Art is where you see it, here and now, and is not portable or reproducible for later “All the Rules Will Change” is probably the exhibition currently on view that’s least suitable for perusing on the internet That’s a good thing Mr Plagens is an artist and writer in New York DANCE The Trouble With Success Alvin Ailey at Lincoln Center Through June 19 BY ROBERT GRESKOVIC S New York ometimes, as the 58year-old Alvin Ailey American Dance Theater continues to acquire dances to surround presentations of its perennially popular and consistently stirring “Revelations,” I’m reminded of one scientific pundit’s view of our solar system: Jupiter and everything else Certainly Ailey, who died in 1989, built a rewarding repertory for himself and his dancers over the years following “Revelations,” his 1960 suite of dances to African-American spirituals that has eager audiences crooning along with its opening strains of “I Been ’Buked” and clapping in rhythm to its rousing finale, “Rocka My Soul in the Bosom of Abraham.” But even he eventually admitted that the work’s runaway popularity actually bothered him a bit, as it tended to overshadow the other dances he offered Under the troupe’s artistic direction, since 2011, of Robert Battle, ”Revelations” still dominates, not only in number of performances (by the end of the company’s current run at the David H Koch Theater, the work will have closed 11 of its 15 performances), but also in artistic detail, depth and impact The five mixed bills—of which I’ve seen the two that present the repertory’s newest acquisitions—offer a few notable alternatives to the theatrical power of “Revelations,” but not many Certainly neither of the new PAUL KOLNIK DAVID BAZEMORE BY PETER PLAGENS Kyle Abraham’s ‘Untitled America: Second Movement.’ works commissioned by Mr Battle did much to enrich the troupe’s repertory and showcase its impressive dancers Especially inconsequential is Kyle Abraham’s “Untitled America: Second Movement.” This 18-minute dance for three men and four women by the 2013 MacArthur Fellow follows the appearance of the work’s even more insignificant first movement last year Again dressed by Karen Young in gray casually cut, unisex costuming, the men and women wander contemplatively through Dan Scully’s often dusky lighting, sometimes in unison, with moves that show them generically supple of limb and dignified of presence Promoted as continuing “to explore the impact of incarceration on African-Americans and their families” and set to music that includes muffled recitations telling of prison sentences in a mix that includes a traditional 1940s work song and electronic compositions by Raime, Mr Abraham’s dance—despite the sometime appearance of hands held up or clasped behind the back as if in custody—remains more vague than detailed, more patchy than pointed Mauro Bigonzetti’s “Deep”— set to eight songs sung by twin sisters, known as Ibeyi, who perform in English and Yoruba—has a cast of 16 whose men and women emerge purposefully from the depths of darkness That, however, is about as deep as this miscella- New works remind us that Ailey himself felt that ‘Revelations’ overshadowed many of the company’s other dances neously busy, gestural display gets Mr Bigonzetti largely ignores the dancers’ skillful feet and legs, focusing instead on prominent upper-body activity; his angular configurations for the arms borrow from the knotty, street movement form known as flexing The three striking women who lead off “Deep”—Jacqueline Green, Jacquelin Harris and Fana Tesfagiorgis—are more memorable for their distinct hairstyles than for the attitudinizing they are given to perform Paul Taylor’s 1997 “Piazzolla Caldera,” by contrast, gives Ailey’s dancers substantial chances to express themselves physically and dramatically In the modern-dance master’s smoldering suite, brought into this repertory last year, five women and seven men are caught up in a world of tango and all the drama that might entail Impressive Jamar Roberts, who worked to thankless effect in both “Untitled America” and “Deep,” shows himself to be formidable throughout “Piazzolla,” where he’s one of four prominent men Linda Celeste Sims, who had no roles in the new, insignificant works, has a central part in Mr Taylor’s showcase, and she makes a terrific showing as she faces down the men and displays singular force throughout this heated affair Elsewhere in this Ailey world where ”Revelations” can seem to overly dominate, Rennie Harris’s hip-hop-lively “Exodus” (2015) manages to stir its audiences, seeming to urge them to join somehow in its activity Mr Harris’s eventually shimmering showcase of pulsating, sneaker-wearing men and women ends with its cast clad in white (costumes by Jon Taylor) The lyrics to “I Wanna Be Ready,” the lone solo section in “Revelations,” tell of putting on ”my long white robe.” The long white tunics of “Exodus” recall such heavenly garments, while Mr Harris’s choreography proves a revelation all its own Mr Greskovic writes about dance for the Journal THE WALL STREET JOURNAL Tuesday, June 14, 2016 | D5 SPORTS Jason Day and his caddie Colin Swatton walk from the 17th hole during a practice round at Oakmont Country Club Heard On The Field Soccer Fans Face Trial After Riots in France Why Oakmont Waged a War on Trees The club has felled 7,500 trees since it last hosted the U.S Open in 2007 BY BRIAN COSTA The transformation of Oakmont Country Club began in the cloak of darkness During the mid-1990s, a dozen groundskeepers would set out at a.m most days and take aim at a tree Guided only by the headlights of a cart, they would cut the tree down, grind the stump, conceal the area with sod and remove all evidence of what they had just done This was how touchy the issue of tree removal was: It began in near-secrecy and continued even as members of the venerable Pittsburgh-area club threatened lawsuits to stop it But when the U.S Open returns to Oakmont for a record ninth time this week, it will represent a closing bookend in the case of chainsaw vs trees The wooded areas that lined the storied course for decades are virtually all gone, casualties of an effort to restore the course to its original, links-style design And the only squirrel left is the one that adorns the club’s logo Roughly 7,500 trees have been cleared since the U.S Open was last held there in 2007, bringing the total victim count to nearly 15,000, by some estimates And it’s not just the vistas around Oakmont that have changed as a result The club itself has gone from something of a heretic in the industry to a trendsetter, leading what turned into a wave of tree-chopping initiatives at courses around the country “There has been a sea change,” said veteran golf course architect Jeff Brauer “Years ago, and even now, you go to some clubs and every tree, it almost requires an act of Congress to remove it But Oakmont certainly opened up the avenues for the wider discussion.” In the larger world, trees are nice, leafy things that grow from the ground, usually not worth an extensive discussion unless one is about to fall on your house In the country club world, trees are treated with only slightly less reverence than wealthy humans Around the middle of the 20th century, they became viewed as the ultimate symbol of golf course beautification Clubs that were built on more of an open terrain—as Oakmont was in 1903—started planting trees Clubs that already had trees added more of them Many were planted as memorials to one person or another But a funny thing happens to trees over time: They grow And grow, and grow, eventually to the point where they can deprive the grass of the sunlight it needs to remain in suitable playing condition This is the point Oakmont had reached in the early 1990s Mark Kuhns, Oakmont’s superintendent at the time and now the director of grounds at New Jersey’s Baltusrol, said trees were overcrowding the course to the point where the turf quality was deteriorating “The question was, you want an arboretum, like a walk in the park? Or you want to play golf?” Kuhns said “If you want to play golf, I need 8-10 hours a day of direct sunlight on tees, greens and fairways.” As has often been the case at other clubs, nobody wanted to hear this The tree removal at Oakmont eventually became impossible to hide, which led to the most conten- tious period in its genteel history Bob Ford, Oakmont’s longtime head pro, said there were even threats of fistfights between members on different sides of the issue, though as with the lawsuits, they never happened A nearby church was rumored to have offered prayers for the trees’ survival But the chainsaw crowd prevailed, and for them, the 2007 Open was something of a vindication Not only did Oakmont’s new look receive rave ‘Do you want an arboretum, like a walk in the park? Or you want to play golf?’ reviews, but the course itself proved to be as tough as it was before The winning score, by Angel Cabrera of Argentina, was over par Oakmont’s signature greens are as fast and vexing as ever And what the course lacks in hardwood obstacles, it makes up for with stronger winds as a result, along with more than 200 bunkers The absence of trees also reduces players’ depth perception as they eye a shot over Oakmont’s rolling hills “In some ways, the course is tougher,” said USGA executive director Mike Davis “I suppose if you’re missing the fairway all the time, now you’re not dealing with trees But in terms of testing the world’s best players, it has become a stronger test It really has, since the trees came down.” The U.S Open has traditionally been held on tree-lined courses, but the tournament’s return to Oakmont 0.007% of Iceland’s Population Is Playing for Iceland If the superpowers of world soccer have one thing in common, it’s huge populations where kids are handed soccer balls before they start on solid foods Brazil has 204 million people The Count and five World Cups Germany’s got 81 million people, four World Cups and three European Championships Iceland is not a soccer superpower But for the first time at Euro 2016, with its population of 331,918, it gets to act like one The sparsely-populated volcanic outpost just south of the Arctic Circle is the smallest country ever to qualify for a major international soccer tournament This includes the World Cup, the European Championships, the Africa Cup of Nations and the Asian Cup (The Count didn’t include the Oceania tournament since the region can’t be considered major in soccer terms—its highest ranked country is New Zealand at No 147.) Trinidad and Tobago remains the smallest country to reach the World Cup in 2002 But even the tiny Caribbean nation has 1.2 million inhabitants Iceland is currently ranked 34th Outsize Achievement How Iceland compares with the FIFA members that rank closest to it in population size COUNTRY Brunei Malta Maldives Belize Iceland The Bahamas Barbados Vanuatu New Caledonia Samoa POPULATION 429,646 413,965 393,253 347,369 331,918 324,597 290,604 272,264 271,615 197,773 POP RANK FIFA RANK 175 176 177 178 179 180 181 183 184 185 Source: CIA World Factbook; FIFA out of 209 FIFA member associations, between respectable tournament performers Sweden and Ireland In terms of its population, however, Iceland’s closest comparison is the Bahamas, one of just six soccer teams in the world to have accrued zero FIFA points—good for a ranking of 204th Of course, Iceland has benefited from the expanded, 24-team format of this year’s European Championships It finished second in its qualify- 197 166 174 113 34 204 140 185 183 168 31 years, 169 days WSJ ing group behind the Czech Republic— but ahead of the Netherlands—to seal an automatic berth Under the 16team format, Iceland would have had to play a two-leg playoff Still, this breakthrough had been coming Iceland made it within 180 minutes of the 2014 World Cup, but lost a two-leg playoff against Croatia “We are the minnows in this tournament,,” said captain Aron Gunnarsson “But in our minds we’re not.” comes during a three-year stretch that is expanding the notion of what an Open course looks like Last year, it was held at Washington’s Chambers Bay, which has not a single tree in play Next year, it will be held at Wisconsin’s Erin Hills, which the USGA selected shortly after it began a tree removal program in 2010 Zach Reineking, the superintendent at Erin Hills, said more than 400 trees have been cleared, leaving just five on the course “The USGA did not demand or require it But are they in favor of it? Yes,” he said There are still some overwrought discussions about trees More than a year after an ice storm felled Augusta National’s famed Eisenhower Tree, club chairman Billy Payne spoke emotionally about it at the 2015 Masters After describing the challenge of creating “an appropriate lasting memory of this tree,” he announced that two grafts and a seedling had been preserved from it “Priceless specimens,” he called them And not all clubs view Oakmont as a model to follow Keith Foster, a longtime course architect who has led tree removal programs, said clubs often tell him they don’t want to go to Oakmont’s extreme “What people perceive of Oakmont is a total nuke of all trees,” he said But many famous clubs, such as Baltusrol and New York’s Winged Foot, have already removed trees on a much smaller scale And Brauer, the architect, said Oakmont continues to come up in talks with clubs that are considering doing the same, making a once-radical idea seem rational “My gut is, this will take hold as a movement in golf, sort of like minimalism,” he said “I think it will finally take off after Oakmont.” In choosing 23 Icelanders for the Euro, Iceland coach Lars Lagerback has selected the equivalent of 0.007% of the population in his squad (though not all the players live in Iceland) If the U.S took a similar fraction of its population to tournaments, then Team USA would include some 2.2 million people That would mean taking enough jerseys for the entire population of New Mexico —Joshua Robinson Average age of Italy’s starting lineup for Monday’s European Championship game against Belgium It is the oldest starting 11 in the history of the tournament Italy beat Belgium 2-0 Source: Opta Sports FEATURE: ANDREW REDINGTON/GETTY IMAGES; THE COUNT: ANOTN BRINK/EUROPEAN PRESSPHOTO AGENCY; HOF: DANIEL DAL ZENNARO/EUROPEAN PRESSPHOTO AGENCY PARIS—A group of 10 soccer fans detained by French police during clashes ahead of England’s weekend game against Russia were being tried in Marseille on Monday afternoon, as authorities sought to prevent more violence from overshadowing the Euro 2016 championship Six U.K nationals, an Austrian citizen and three Frenchmen were facing a judge in Marseille, prosecutor Bruce Robin told reporters They are charged with violence with objects used as weapons against police officers and fellow fans, he said, adding he would request prison terms The defendants and their lawyers were in court and weren’t reachable Monday afternoon The wave of violence that swept through Marseille’s Vieux Port area Saturday night left 35 people injured, most of them English fans The clashes and later violence exposed gaps in security for a tournament taking place under heightened risks of terrorism Robin said security forces identified around 150 “extremely welltrained” Russian fans as being involved in the clashes Most of them escaped police TV footage showed fans hurling bottles and chairs at each other amid tear-gas fumes It took an hour and a half for riot police to restore order Violence continued during the game in the area of the stadium reserved for Russia’s fans, where banned flares were set off, including one that launched onto the field Another 10 men are in police custody and will be tried later A Russian was freed after it turned out he was himself a victim of violence and another one was deported Following the clashes, the European soccer body UEFA said it had opened disciplinary proceedings against the Russian Football Union and would rule on possible sanctions on Tuesday French police said they were taking measures to prevent any further violence Still, brawls broke out in Lille on Sunday night in the hours ahead of the game between reigning world champion Germany and Ukraine Police detained six people The clashes in Lille left about 40 people injured, including five who were hospitalized —Inti Landauro and Joshua Robinson THE WALL STREET JOURNAL D6 | Tuesday, June 14, 2016 THE NEW JACK RYAN JR THRILLER WRITTEN BY GRANT BLACKWOOD ON SALE TODAY After surviving an attempt on his life, Jack Ryan Jr races to discover the reason behind the attack and to stop the men who want him dead T O MC LAN C YA U T H O R T O M C L A N C Y C O M Audio available Also available THE WALL STREET JOURNAL Tuesday, June 14, 2016 | S1 NY * * Special Advertising Feature EYE ON DUBAI World-Class City, Global Vision The phenomenal rise of the jewel in EMEA’s crown The Wall Street Journal news organization was not involved in the creation of this content Inviting Possibilities Together we can transform our potential into Dubai’s reality 14.2m The volume of hotel guests visiting Dubai in 2015 www.dubaifdi.gov.ae RETAIL POWER Dubai is the world’s second most important retail destination 100% CONNECT Dubai is home to more than 200 nationalities Foreign ownership in Free Zones Dubai also offers 0% taxation S2 | Tuesday, June 14, 2016 NY * * THE WALL STREET JOURNAL Special Advertising Feature EYE ON DUBAI The “first post-modern state:” Dubai has created and developed its brand with iconic buildings, sporting events and celebrities Open, Diverse and Growing: A 21st-Century Global Hub Welcome to Dubai, whose pro-business culture is attracting companies and improving world trade Dispute Resolution Authority (DRA) and By Jonathan Gregson which accounts for nearly 30% of GDP, facFully aware of this, Dubai’s government D ubai has come of age Having established itself as a major trade and transportation hub, a truly global tourism destination and a dynamic financial center, it is now moving rapidly toward becoming a “smart city” that is home to a 21st-century knowledge-based economy The city state is already the world’s largest re-exporter of goods It is home to more than 20 free zones that guarantee 100% foreign ownership and tax benefits for investors Its work ethic and pro-business culture has attracted a diverse international work force And its geographical position between Europe, Asia and Africa, combined with unparalleled transportation links, have attracted many of the world’s largest companies to Dubai BIGGER AIRPORT Last year Dubai International Airport overtook London’s Heathrow to become the world’s busiest international airport And a new, larger Al Maktoum airport is on its way That is not to say Dubai has not faced serious challenges The real-estate crash of 2009 dented confidence, and more recently the impact of low energy prices on other economies in the region has curbed growth “As an open economy, and one that is more diversified than its energy-reliant neighbors, Dubai is more exposed to global trends, such as lower aggregate demand,” observes Carla Slim, Standard Chartered Bank’s Dubaibased economist responsible for the Middle East and North Africa “International trade, GOVERNMENT IS MAKING DUBAI MORE ATTRACTIVE TO FDI THROUGH REFORMS AND NEW LAWS es challenges The dirham’s peg to a stronger U.S dollar has impacted on tourism arrivals, although average occupancy rates during the first quarter of 2016 were 85% and transportation remained strong.” Despite these headwinds, Dubai’s economy grew 3.9% last year, and the closely watched Emirates NBD economy tracker index has picked up recently Annual GDP growth of 4%-5% is anticipated over the next five years And Dubai continues to be a magnet for foreign investment, attracting more than US$7 billion in 2015 Much of this success comes down to the vision of Dubai’s government “Dubai is an exemplar of what to with short-lived oil reserves in building a more diversified and sustainable economy over the longer term,” says Roy Batchelor, professor of banking and finance at London’s Cass Business School Indeed, the phenomenal rise of Dubai over the past 40 years is proof, says Ronen Palan, professor of international political economics at City University London, “that theories about the nation state replacing city states are simply not true City states like Singapore, Hong Kong and even London are still very powerful entities.” ICONIC BUILDINGS Prof Palan sees Dubai as the “first post-modern state” because—unlike its predecessors— Dubai deliberately set out to create a brand and develop it through its iconic buildings, hosting prestigious sporting events and attracting celebrities He also notes that its attractiveness to international investors rests not only on its having achieved critical mass as a trading and financial center, a transportation hub with a huge free zone, but also because of its adoption of the English language and common law, and close links with the City of London “The emergence of the DIFC (Dubai International Financial Centre) Courts in the late 2000s transformed the legal landscape by giving businesses the option to resolve their disputes in English, using common law principles applied by a world-class bench of judges,” explains Mark Beer, chief executive of Dubai’s Registrar of DIFC Courts “Over the course of a nearly a decade, the DIFC Courts have steadily earned the trust and confidence of the international business and legal community, which in turn has encouraged investment, created opportunities and attracted talent It is a virtuous circle, with fast, familiar and enforceable dispute resolution services a hugely important, but often overlooked, catalyst.” Michael Hwang SC, Chief Justice, DIFC Courts and head of the DRA, adds that Dubai has “emerged as an internationally recognized center of legal excellence, and a key component of the global system for resolving commercial disputes.” All of which provide comfort to investors Prof Palan sees this as crucial to Dubai’s success, which he argues is part of the re-emergence of a “second British Empire” based in different jurisdictions around the world (most of them former colonies or protectorates) that benefit from globalization and rising international flows of goods, capital and labor Taken together, some 40% of all international deposits and investments pass through them And as offshore jurisdictions in Europe and the Caribbean come under increasing scrutiny in the light of recently emerged scandals, he foresees Dubai—which is a low-tax rather than an offshore jurisdiction—attracting more asset and money management “Government is leading the way in making Dubai more attractive to FDI through introducing reforms and new laws,” says Ms Slim, pointing to the doubling of property tax as an effective move to curb real-estate speculation “And it continues to pursue its growth strategy with a budgeted 12% increase in spending.” Prof Batchelor points out that Dubai started without the established infrastructure and entrepreneurial population of Singapore or Hong Kong “Driven by energetic leadership, they had to adopt a different growth model,” he says, “the small indigenous population being bolstered by large numbers of expatriate professionals and workers.” A necessary step to achieve critical mass, but one which he sees as opening up “vulnerabilities, because so much of the professional population is transient.” is pushing through not just iconic buildings such as the venue for Expo 2020, but more affordable housing where expatriates can make homes over the longer term “There is a need for more affordable housing,” says Farhad Azizi, CEO of Azizi Developments, “and we and other developers are looking to provide a better mix between high-end business and affordable properties, where demand is much higher “Most clients are now end-users, expatriates wanting to make a home in Dubai, whereas previously there were more investors,” he adds “Around 70% are GCC nationals and the remainder from the U.K., Germany, Australia and South Asia.” In addition, more highly skilled workers will be needed in Dubai’s new knowledge-based economy and its emerging role in digitalized global trading DIGITAL BUSINESS As Gautam Sashittal, CEO of DMCC (Dubai Multi Commodities Centre) points out: “Our free-zone business is now entirely digital You can now set up a business with us from anywhere in the world, at any time, on any device “Our digital transformation,” he says, “is already changing the way we business and bringing new opportunities to our door For example, we recently welcomed AstroLabs Dubai to our free zone, a remarkable company and the only Google-backed tech hub in the Middle East It is unlikely that we would be able to attract companies of this type and caliber to DMCC, or indeed Dubai, if we did not fully embrace technology and digital strategy.” Mr Sashittal emphasizes that he sees the digitalization of trade as “benefiting every country, every city and every company on earth It impacts on all of us.” In its recent study, The Future of Trade, DMCC determined that the adoption of a complete digital strategy would create as many as 350 million more exporters world-wide “Dubai and DMCC are at the center of the world of trade,” says Mr Sashittal, “so any means of improving global trade is essential to us.” Jonathan Gregson is a freelance business and finance writer Interview with Fahad Al Gergawi, CEO of Dubai Investment Development Agency (Dubai FDI) DUBAI INVESTMENT DEVELOPMENT AGENCY How you see Dubai’s role in the world today from a Foreign Direct Investment (FDI) perspective? This is a very interesting time for Dubai, one in which I think we’ll see a reshaping of the city over the next five years Dubai has sustained its economic growth in 2015 despite global challenges, from the drop in oil prices to economic uncertainties in Europe, China and Russia Dubai’s diversified economy has been able to absorb these challenges and create new opportunities for investors Dubai invests heavily in people, technology, innovation and infrastructure As a smart and sustainable city, Dubai is set to lead the world in developing the future urban environment, powered by connectivity, renewable energy and innovation I believe Dubai offers unique FDI opportunities for market leaders who want to be part of government initiatives in new sectors like clean and green technologies, 3D printed buildings, and autonomous mobility As a gateway to the MENASA (Middle East, North Africa and South Asia) region, Dubai has been successful in offering a wealth of FDI opportunities and facilitating investors’ success, growth and expansion into regional and international markets Companies based in Dubai expand and grow their business into a dynamic market of 2.4 billion consumers, offering untapped trade and investment potential Dubai is a strategic hub for international business, finance, trade, logistics, aviation and tourism As the largest re-export hub in the world today, Dubai is at the center of goods flowing between Africa and Asia and Europe What are the key sectors currently attracting FDI, what areas of potential are now developing, and how this will feed into the Dubai Strategic Plan 2021? Logistics, tourism and retail, which have remained the chief growth engines of Dubai, have performed consistently well in recent years The construction sector has registered steady growth and, given the scale of ongoing projects and preparations for the Expo 2020, the momentum will pick up further Financial business services, ICT and renewable energy are new sectors that have attracted investors’ attention The Dubai Smart City program is poised to power a new cycle of growth driven by innovation in new sectors and services How have improvements in infrastructure contributed to Dubai standing as an investment destination? Investor confidence in Dubai has improved consistently in recent years and government is matching that with investment in infrastructure and innovative sectors such as smart city, renewable energy, aviation, education and health care Businesses operating in Dubai enjoy an advantage through continued investment in infrastructure, mega-projects and global events like Expo 2020 What are the key attractions of Dubai for knowledge-based and innovative industries, and how is it rising to the opportunities and challenges of the digital age? The UAE is now moving to the next level of growth, where it aims to be a knowledge-based economy The government’s target is for a 5% contribution to GDP from the knowledge industries by 2020 An example of this commitment is the TECOM fund, with a total investment of 4.5 billion dirhams (US$1.2 billion), to support the Innovation Hub of Dubai Internet Fahad Al Gergawi City and Dubai Design District (D3) The Innovation Hub will provide 1.6 million square feet of dedicated space to around 15,000 knowledge and creative workers, while D3 will provide an inspiring one million square-foot destination for emerging designers and artists Dubai has been at the forefront of the transition to a green economy globally Milestones include one of the largest renewable energy projects in the world, Mohamed Bin Rashid Al Maktoum Solar Park, and 50 billion dirhams are being invested to produce 5,000 megawatts of renewables by 2030 Current investments in smart-grid infrastructure are creating new opportunities through smart-home technologies, from smartmeter to home-solar and energy-storage solutions jonathan gregson THE WALL STREET JOURNAL * * Tuesday, June 14, 2016 | S3 NY Special Advertising Feature EYE ON DUBAI TAKING THE TEMPERATURE OF DUBAI’S INDUSTRIES Dubai’s efforts to diversify its economy are paying off The International Monetary Fund forecasts 3.7% growth in the emirate’s economy, far better than the 1.8% average for the Gulf Cooperation Council “Key sectors of the economy are holding up relatively well, compared to peers in the GCC,” says Mohamed Abu Basha, economist at EFG Hermes Holding “The fact that Dubai is more diversified than others means they can generate income” for the government, which can increase its fiscal budget and continue to support new projects Some of those key sectors include: H OS P IT AL IT Y LOGISTICS GREEN ENERGY About 14 million people visited Dubai last year, up 7.5% from The new Al Maktoum International Airport opened in 2010 for Dubai wants to get 7% of its energy from renewables by 2020, a year earlier, keeping the emirate on track to reach 20 million cargo and 2013 for passenger flights, and will be the world’s and 25% by 2030 “It’s a big focus, with big investment going annual visitors by 2020, when it hosts the World Expo The rise largest for both passengers and cargo when completed on,” Mr Kemppainen says of green technology Among the continued in 2015 despite a drop in arrivals from Russia, which in 2018 The airport is near Jebel Ali Port, allowing for green energy projects, Dubai Electricity and Water Authority has traditionally been one of Dubai’s key source markets exceptionally fast and low-cost inter-modal transfers recently announced plans for US$7.35 billion of renewable Dubai is diversifying its hotel offering beyond the opulent “Dubai is by far the No in the region for logistics, acting as close to producing solar electricity for 2.9 US cents per kilowatt five-star venues that have made it famous While luxury hotels a gateway for a lot of the products that go into the GCC as a hour, “the lowest price for solar energy in the world so far,” continue to be built, the Dubai is encouraging some three-star whole,” says Mr Abu Basha of EFG Hermes “It has efficiency, he says “It becomes very attractive at that price It shows the hotels, in connection with the Expo, Mr Abu Basha says “It will flexibility and—not fully but quite—automated operations.” dynamics in the solar industry, the ability to build solar and widen affordability for Dubai in general,” he adds Harmen De Connected to the port and airport are free trade zones that renewable projects that are efficient The country is committed Jong, partner in Dubai with Knight Frank, the global real-estate “create an attractive hub to export goods through or to to building this future It plans to celebrate the last barrel of oil consultancy, says, “The markets of particular interest are the manufacturing or assembly,” says Ami Kemppainen, managing to be shipped in 50 years.” new and growing middle classes of India and China They will partner at Terra Nova Capital Advisors, Ltd energy projects, including expansion of a solar park Dubai is be able to afford a holiday, but won’t spend hundreds of dollars on a room That’s where a lot of growth is going to be.” Dubai is diversifying its attractions as well, with an opera house, what will be the world’s largest Ferris wheel, and some themed amusement parks FINANCE HEALTH CARE “Dubai has established itself as the major financial hub in the region,” Mr Abu Basha says “When foreign financial RETAIL Dubai set up a free zone for health care in 2002, to create institutions want to establish a presence in the region, they a center of excellence for health care and a magnet for often choose Dubai, One of Dubai’s main tourist draws is shopping Already home medical tourism “What used to happen was when a medical because it is in the free-trade zone They can have 100% to several mega-malls, Dubai is aiming for the top spot with issue was complicated enough, the patient was sent to the foreign ownership, and the country offers a decent lifestyle an eight million square-foot shopping center, called Mall of U.K or another European country to be operated on,” Mr for a lot of professional expatriates.” The sector isn’t immune the World Meanwhile, some existing malls are expanding, and Kemppainen says “Now those capabilities are moving here.” to the ups and downs of oil prices, but “banks are still able City Walk—an outdoor retail complex—has defied the climate The Dubai Health Authority forecasts 1.3 million medical to grow, just at lower rates than in the previous two or three to draw shoppers, diners and moviegoers to its venues Retail tourists by 2021 The Clemenceau Medical Center, affiliated years,” he says occupancy rates remained unchanged at the robust level of with Johns Hopkins Medicine International, was recently 92% last year, according to JLL announced as part of Phase of Healthcare City’s expansion catherine bolgar is a freelance business writer INVESTMENT OPPORTUNITY IN PRIME RESIDENTIAL COMMUNITY IN DUBAI, AL FURJAN - STARTING FROM USD 150,000 AL MAKTOUM INTERNATIONAL AIRPORT 10 MINUTES DRIVE 15 MINUTES DRIVE * PALM JUMEIRAH DUBAI MARINA SHEIKH ZAYED RD JUMEIRAH LAKE TOWERS IBN BATTUTA MALL PALM JEBEL ALI SHE IKH JEBEL ALI VILLAGE ZAY ED RD MED BIN YE ZA D RD DUBAI INVESTMENTS PARK AM EIKH MOH SH PROJECTS IN AL FURJAN EXPO 2020 AL MAKTOUM INTERNATIONAL AIRPORT • Modern living redefined • Studio,1,2,3 BR apartments available • Ample parking for residents and guests • Landscaped surroundings RD TES IRA EM • Fully fitted kitchen • High ceiling lobby with excellent finishing • Fitness club with sauna and steam facilities • Podium level swimming pool along with kids pool area www.azizidevelopments.com Dubai – Head Office: API World Tower, Suite No 902 / 904, Sheikh Zayed Road, Dubai, United Arab Emirates Phone: +971 359 6673 – Mobile: +971 56 299 8939 /AziziGroup S4 | Tuesday, June 14, 2016 NY * * THE WALL STREET JOURNAL Special Advertising Feature EYE ON DUBAI PROPERTY MARKET HEADING FOR A SOFT LANDING There’s good value in Dubai’s real-estate market right now Catherine Bolgar examines a broadening range of opportunities for residents and investors AZIZI DEVELOPMENTS AZIZI DEVELOPMENTS WE EXPECT PRICES TO BOTTOM OUT BY THE END OF THIS YEAR OR EARLY NEXT YEAR, AND THEN WE WILL SEE AN UPTURN IN PRICES The man-made Palm Jumeirah archipelago (above) is seeing gap sites filled in with new buildings such as Royal Bay (right) Far right: Azizi’s Al Furjan building project is helping to meet the need for affordable homes A fter some rollercoaster years, Dubai’s real-estate market is gaining stability, while also diversifying beyond ultra-luxury offerings “Despite some negative sentiment around a market slowdown in 2015, real-estate performance in Dubai continues to be among the top global cities,” according to “Middle East Real Estate Predictions: Dubai 2016,” a recent report by Deloitte Low oil prices and a strong dollar have cooled demand from two of Dubai’s biggest customer bases: the members of the Gulf Cooperation Council and Russia Average residential sale prices fell 11% to 13% in 2015, but the decline slowed in 2016 Yet, certain segments and neighborhoods found continued strength, and the overall outlook is brightening “The market is heading for a soft landing rather than a hard landing,” like in 2009, says Alan Robertson, chief executive officer, Middle East and North Africa, for JLL, the global real-estate investment management and professional services firm “We expect prices to bottom out by the end of this year or early next year, and then we will see an upturn in prices.” The decline in prices means “there is good value if you buy now,” says Harmen De Jong, partner in Dubai with Knight Frank, the global real-estate consultancy Dubai has grown rapidly, to 2.5 million people from 689,000 in 1995 “It’s likely that population growth will soften as the city matures,” he says Growth—and construction—continue around Dubai, often in very creative ways The stunning man-made Palm Jumeirah archipelago is seeing gap sites filled in with new buildings, including Royal Bay, being built by Dubai-based Azizi Developments Consisting of 90 apartments, the design undulates like the Active Population Movement During Peak Hours* End of the Year - Emirate of Dubai (2013 - 2015 ) 2015 2014 2013 2,446,675 2,327,350 2,213,845 1,105,500 1,081,000 1,073,375 3,552,175 3,408,350 3,287,220 Number of permanent residents** Workers in the Emirate from those who reside outside the Emirate and temporary residents*** TOTAL * Peak hours : The usual daily peak hours from Saturday to Thursday 6:30 am to 8:30 pm ** Estimated based on the annual population growth rate (5.0%) *** Includes percentage of employees at federal government, local government and private sector who reside outside the Emirate of Dubai besides average number of tourists and sailors Source : Dubai Statistics Center waves of the sea it faces and is situated so that every room of every apartment— even the kitchen—has a floor-to-ceiling view of the water It also includes the amenities typical of a five-star hotel, such as restaurants, a gym, swimming pool, concierge, chauffeur and cleaning services, but with more privacy “It’s one of the few projects on the crescent [of the Palm] that’s purely residential,” says Farhad Azizi, chief executive of Azizi Developments The World is another archipelago of 300 islands that form a map of the world—an ingenious way, like the fronds of the Palm, to provide a maximum amount of prized waterfront property Another water-facing project farther inland, Dubai Creek Harbour, which had been on hold during the economic crisis, is back on the table “Over the next 10-20 years, the original idea was to have hundreds of thousands of people living in this particular development alone,” Mr De Jong says The southern part of the city also is home to construction, with the new Al Maktoum International Airport and the Expo 2020 site driving activity Between that hub and downtown, another development, Al Furjan, is targeting mid-range residences, a promising segment that has been largely overlooked in luxury-focused Dubai “It’s a significant change,” says Mr Robertson of JLL “Developers are looking more at where demand is.” A JLL report last year found that middleincome housing represented 40% of demand, but that only 20% of offerings were suitable for a middle-income budget Azizi is building 24 projects in Al Furjan, with five in Phase nearing completion “We felt the need for more affordable homes,” Mr Azizi says “Affordable can mean many things—building amenities, size and location Here it means a total price below one million dirhams, or about US$300,000.” Savings come from slightly smaller units, which accommodate the trend toward smaller family residences People are content with such apartments because they come with less maintenance, are cost-efficient and are minutes away from all serviced areas, he notes Azizi uses new, efficient technology for big expenses such as air conditioning, to rein in a major cost for both the developer and the end user Some of the towers are serviced apartments, a popular offering in Dubai for business travelers, short-term ex-patriates and longer-term ex-pats awaiting permanent housing A number of well-known hotel brands also have serviced apartments here However, the trend isn’t limited to hospitality names A Dubai hotel chain licensed the name of a major Hollywood film studio to add cachet to its luxury serviced hotel apartments Dubai is particularly welcoming to ex-pats, who currently make up 88% of the population Mr Azizi mentions that his own family, originally from Afghanistan, has lived in many different countries, “but we consider Dubai to be home Dubai is very integrated.” The office market is mixed, because of a “strata” law that allows for multiple owners of a building—something that worked well for spreading risk in apartment towers But in office towers, it makes it difficult for tenants who want to rent large spaces and who have to deal with several owners “Strata-titled office space has been suffering As a result, and due to a perceived lack of quality stock, tenants have opted for build-to-suit solutions, where a building is designed according to specifications of a long-term tenant There is still demand for good-quality office buildings, but availability isn’t always there,” says Mr De Jong of Knight Frank catherine bolgar is a freelance business writer THE WALL STREET JOURNAL Tuesday, June 14, 2016 | S5 NY * * Special Advertising Feature EYE ON DUBAI Average residential sales transaction values, Dubai, 2014 vs 2015 4% Average residential sales price percentage change, key Dubai submarkets, Q4 2014 to Q3 2015 3% 4% 6% 16% DIFC: 0.9% 23% Dubailand (Villas): -5.7% International City: -6.3% Palm Jumeirah (Prime apartments): -6.5% 68% Arabian Ranches: -7.5% 77% 2014 Palm Jumeirah (Villas): -7.5% Discovery Gardens: -7.6% 2015 AED 6m+ AED 2.01m to 4m AED 4.01m to 6m Sports City (Apartments): -9.0% up to AED 2m Dubai Marina (Prime): -9.2% Business Bay: -9.4% Residential monthly sales transactions, Dubai, 2014 and 2015 Downtown Prime: -9.9% 1,600 The Greens: -10.0% 1,400 JLT: -11.2% 1,200 1,000 800 The Views: -12.3% 600 400 Downtown Super Prime: -15.1% 200 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec JBR: -15.8% 2014 2015 year average Source: Deloitte Middle East Real Estate Predictions: Dubai 2016 A PRESTIGIOUS ADDRESS & EXCEPTIONAL LIFESTYLE, AT THE PALM JUMEIRAH, DUBAI * • Private gardens • Infinity edge pool • Striking architecture • Payment Plan 20 - 80% • Private sandy beach • Star services and amenities • Luxury 1,2,3 & BR Penthouses • Ample parking for residents and visitors www.azizidevelopments.com Dubai – Head Office: API World Tower, Suite No 902 / 904, Sheikh Zayed Road, Dubai, United Arab Emirates Phone: +971 359 6673 – Mobile: +971 56 299 8939 /AziziGroup S6 | Tuesday, June 14, 2016 NY THE WALL STREET JOURNAL * * Special Advertising Feature EYE ON DUBAI Building for Tomorrow The city’s infrastructure projects are part of a modern-day phenomenon W ith a series of futuristic and ambitious infrastructure projects underway, Dubai is not only confirming its status as a regional and global business hub and visitor destination, but further transforming itself into a model of 21st-century development “Today, few countries are as well connected as the UAE,” says Gautam Sashittal, chief executive officer at DMCC, a leading Dubai inward-investment agency, concentrating on infrastructure “Dubai International Airport is now the world’s busiest As a maritime city, Dubai maintains strong nautical connections with the world through Jebel Ali, which consistently ranks among the world’s top 10 container ports Our road networks are among the best in the world.” Of the current new developments, Mr Sashittal points to the southern gateway to Dubai, including Dubai World Central—the vast new conurbation emerging around Al Maktoum International Airport—and the Burj2020 District, with its giant new office and residential towers “The Dubai South developments will add to and improve these networks on land, sea and in the air Connectivity is key to building the city of the future,” he says The Al Maktoum airport project by itself is among the world’s most ambitious infrastructure developments “It’s as if London’s Heathrow were being moved to the other side of the city,” says Peter Snellgrove, senior designer at LW design agency in Dubai The full extent of the airport when it is completed will be astonishing, with its five runways and surrounding development “Al Maktoum airport will need dozens of hotels, vast support services, accommodation, plus there is the Dubai 2020 Expo So this is the main area of the city that’s being developed at the moment In a couple of years I think there will be an explosion of hotel development,” he adds Mr Snellgrove rates Dubai as the best place that he’s worked, in terms of infrastructure, “including the United States,” with perfectly maintained roads, and hotels that can match anything elsewhere in the world for standards and price Following the boom years of the early 21st century, when Dubai expanded at a phenomenal rate, there was an understandable slowdown after the international credit crisis Then in 2013 came a sudden change in tempo, as new real-estate regulations came into force “Things turned around 180 degrees in 2013,” says Farhad Azizi, owner and president of Azizi Developments, one of the prime residential developers in Dubai In particular, the city’s Land Department introduced an escrow account system, where investors could deposit funds for real-estate acquisitions, with the money unavailable to developers until the project’s completion Azizi Developments typically completes around 30% of its projects before opening them for sales “Investors and buyers can see that construction is in full force, so they can have confidence in the project,” says Mr Azizi “We’re construction-driven, rather than making nice brochures.” As a result there has been an upsurge in high-spec, attractive residential developments across the city, from the Dubai Marina to Burj Khalifa to Jeleb Ali: “A new city all on its own,” as Mr Azizi puts it These regulatory changes are part of a new engagement between the Dubai authorities and global partners, according to Farhad Al Gergawi, chief executive of Dubai FDI “The fast-evolving infrastructure and policy environment in Dubai enable the city to asset its added value and potential as a business hub,” he said as he hosted the Dubai Investment Forum in Oct 2015 Dubai’s extraordinary ability to initiate and fulfill huge infrastructure projects stems from the vision of the Al Maktoum family, according to Tony Goodwin, who part-owns a major recruitment agency in the city and won Recruitment Entrepreneur of the Year 2016 at the Recruiter Magazine awards “The Al Maktoums deserve the credit for the vision to create a service-based economy,” says Mr Goodwin “The three-star hotels are of fivestar standard Everyone looks to Dubai as the place to business The infrastructure development is a 21st-century phenomenon.” This latest burst of development activity has multiple objectives: visitors need more activities to entertain them, as well as a more attractively landscaped environment; Dubai can increase its capacity to act as a global gateway, linking the East and West; and it can continue to satisfy the appetite of investors and residents alike to acquire high-spec, iconic residential property Dubai’s developers are hard at work, as the city attempts to become the world’s most exciting metropolis CONNECTIVITY IS KEY TO BUILDING THE CITY OF THE FUTURE Prominent Dubai infrastructure projects Al Maktoum International Airport Aiming to host up to 160 million passengers and handle 12 million tonnes of cargo per year, this unprecedented development will further cement Dubai’s place at the center of the global aviation and transport logistics industry As part of Dubai World Central, the airport will be connected to the rest of the city via the Dubai metro, a light railway line, and by a high-speed express link to Dubai International Airport It will have terminals dedicated to Emirates Group aircraft, low-cost carriers, and other global carriers and freight, becoming the world’s largest airport when complete Dubai Frame This eye-catching frame-shaped building, stretching 150 meters into the Dubai skyline and measuring 93 meters across, is expected to attract high tourist numbers once it completes Many of the city’s most popular landmarks can be seen through the frame, with the developers aiming to make it a Dubai icon on its own Dubai Water Canal Launched in 2013, the Dubai Water Canal extends Dubai Creek by three kilometers to connect the Business Bay with the Arabian Gulf Between 80 and 120 meters wide, it will provide the city with a new stretch of public waterfront and expand residents’ access to water-based leisure activities At the same time, Dubai authorities are investing heavily in sports infrastructure, as the city boosts its appeal to visitors who enjoy cycling (the new Al Qudra and Nad Al Sheba cycle routes) and running Dubai Theme Parks Three major city theme parks are in development in Dubai All three will have extravagant facilities, including a 60,000 square-foot stage for one and 15,000 models at another The parks will significantly expand options for families, whether local residents or visitors, looking for world-class entertainment Dubai Opera Sitting alongside the world’s tallest building, the Burj Khalifa, and the famous dancing fountains at its base, Dubai’s new opera house will help to establish the city “as a seat of arts, culture, performing arts and world-class events,” says Mohamed Alabbar, chairman of the project’s developers, Emaar Properties Audiences numbering up to 2,000 will be able to watch theatrical performances, while 1,000 people can be seated for dinner in the building, which draws its architectural vision from a traditional dhow vessel Above: Jebel Ali consistently ranks among the world’s top 10 container ports Dubai 2020 Expo – Showcasing Innovation This ambitious event will have an impact far beyond the Middle East By the time the Dubai 2020 Expo has reached its conclusion in Apr 2021, this extraordinary event will have welcomed more than 25 million visitors from around the world, created more than 275,000 jobs in the region and generated around $17 billion for the Dubai economy It promises to be the largest, best-attended, most influential Expo of the 21st century So vast is the scale and ambition of Dubai 2020 that it is expected to have a far-reaching global impact: “We have made a commitment to the international community to make the 2020 Expo a true World Expo,” says His Highness Sheikh Ahmed bin Saeed Al Maktoum, chairman of the preparatory committee The event will leave behind “a strong, transformative social and economic legacy across the region and beyond.” The most evident sign of this legacy will be the physical structures created for Expo 2020, including the three giant pavilions These represent Opportunity —designed by the Bjarke Ingels Group (BIG) from Denmark—Mobility, from U.K.based Foster + Partners, who drew up the masterplan for Abu Dhabi’s Masdar City— and Sustainability, designed by the U.K.’s Grimshaw Architects, whose Eden Project in the south-west of England has won international acclaim An extension to the Dubai Metro’s Red Line will take visitors to the site, as part of a widespread program of transport infrastructure improvements that have emerged in recent years ness tourism for the region, reinforcing the UAE’s established position as an international destination… and a business-networking hub through trade fairs, mega-events and conferences,” say the event organizers Taking as its theme “Connecting Minds, Creating the Future,” Dubai Expo 2020 will explore the opportunities for collaboration and communication opened by digital technology The event will pose the question, “How, by connecting, collaborating and forming new partnerships, can we develop ideas and innovate in order to create a better future? Important partnerships that will form the basis of the Dubai 2020 Expo include the Collaborative Entrepreneurship program, bringing corporations and start-up businesses together to “unleash value and enable growth,” as the organizers put it, through combining the powerful resources of the corporate world with the agility and flexibility of start-ups Both sides can benefit from this initiative, according to Habib Haddad, founder and chief executive of Wamda (from the Arabian for “spark”), a Middle Eastern entrepreneurshipplatformheadquartered in Dubai “Start-ups can leverage the resources of large companies to scale rapidly, and large companies can tap the innovative potential and flexibility of startups to obtain access to new markets and technologies, as well as skills,” says Mr Haddad Bluewaters Island A hotly tipped tourism destination of the future, Bluewaters Island is set to combine residential, entertainment and retail developments close to the Jumeira Beach Residence, with a five-star hotel and a gigantic Ferris wheel—expected to be the world’s largest Built on an island, it will also feature a road link to the mainland With its eyes set on additional infrastructure expansion and future uses for its major structures, Dubai 2020 Expo aims to further establish the city as a global destination Set in 438 hectares of land to the south of Dubai, with connections to three international airports, the Expo will take place within the Dubai Trade Centre Jebel Ali development david nicholson is a freelance writer This location for Dubai 2020 “will become a new focal point of global busi- specializing in business, finance and politics Dubai Marina: part of an upsurge in high-spec Dubai 2020 Expo will take place within the Dubai residential developments across the city Trade Centre Jebel Ali development DUBAI 2020 EXPO As part of the Expo preparations, an apprenticeship program will train young people in Dubai, creating opportunities for the future, while the BusinessConnect program will build on regional dialogue with hundreds of enterprises in Dubai and the UAE “Expo will provide opportunities for these businesses… to work with us toward our objectives,” says Her Excellency Reem Al Hashimy, the UAE’s Minis te r of St ate for Inte rnat ional Cooperation THE WALL STREET JOURNAL Tuesday, June 14, 2016 | S7 NY * * Special Advertising Feature EYE ON DUBAI GROWING IN NUMBERS, BROADENING ITS OUTLOOK Comfort and security are part of the quality of life By David Nicholson T he rapidly modernizing, high-tech, well-connected and thriving commercial and social environment of Dubai has acted as a powerful magnet to visitors and new residents in recent years The city’s permanent population has risen from 1.5 million in 2007 to 2.5 million today, with expectations of a further rise to 3.4 million by 2020 When you include temporary flows of visitors and commuters, this number already tops million Such is the influx of new residents to Dubai that the city has become “like a United Nations,” according to property developer Fardah Azizi, whose own family arrived there from Afghanistan a generation ago His neighbours include Australians, Canadians, Filipinos and Indians, attracted by a booming economy and a tolerant, friendly society “Regardless of where you come from, you can feel comfortable and secure here,” says Mr Azizi “The longer I spend here, the more I feel that The authorities speak English, Arabic, even Hindu, and it’s becoming very high-tech: you can so much online, from renewing your driving licence to getting development permissions.” Despite this dramatic uplift in population, Mr Azizi feels that the city has been able to absorb its new arrivals smoothly New transport links, such as the Metro system, have helped to ease traffic congestion (though it’s still tough to drive around during peak periods); residential, business and retail developments have spring up all over the city to house, clothe, feed and entertain residents; and general infrastructural improvements to water and energy systems have kept pace with the rising population In contrast to some petroleum-based economies, which have tightened their belts since oil prices collapsed, the city has been relatively immune “Dubai is not dependent on energy prices,” notes Azizi “It does well in challenging times and boom times It’s evolved into an international city, with the infrastructure to fulfil residents’ and visitors’ needs.” In fact, falling oil prices have been advantageous to Dubai in some ways Energy-related goods such as steel and concrete are cheaper today, aiding the construction industry in which Azizi operates “We were worried initially by the oil price fall, but it really hasn’t had an impact on Dubai.” Some recent arrivals from states such as Saudi Arabia and Qatar may in fact be fleeing the results of oil price falls Some aspects of life in Dubai remain challenging for residents Increased numbers have pushed property rental values up, putting pressure on middle income workers The concentration of new building developments, whether for offices, residential, commercial or retail, means that roads are frequently closed to traffic, making route-finding an absorbing game (to put it politely) Road safety also remains a concern in Dubai, with traffic accidents and injuries high by international standards Dubai has long capitalized on its location as a trading center, situated between the Far East and Western Europe, between Russia and Africa “The UAE has become a vital hub along the new Silk Road connecting Asia, Europe and Africa, serving as a key entrance point to the world’s fast growing and developing economies,” says Gautam Sashittal, chief executive at DMCC (Dubai Multi Commodities Centre), established in 2002 to facilitate the city’s global growth as a business hub “DMCC is proud to be a key contributor to that success.” Today of course, the majority of arrivals are by air rather than sea or land With the rise to global prominence of Emirates and Etihad airlines, together with the growth of the UAE’s airport infrastructure, it is easier to reach Dubai than ever before in history The camel-riding trading caravans of the 19th century have been replaced by the Airbus A380 superjumbos of the 21st century, placing Dubai ever more firmly on the global transport map and raising its profile in the business community and with global travellers “The expansion of Al Maktoum Airport is bringing thousands of new visitors into the city,” says one Dubai-based banking executive, a graduate of Trinity College, Cambridge in the U.K., who has an eye and an ear for culture “Sometimes you can’t get a table in a good restaurant without a week’s notice.” She’s eagerly anticipating the opening of the new Dubai Opera House this year and spends her leisure time in the rising bohemian quarter of Al Quoz “It’s full of funky arthouse cinemas and galleries,” she says “Dubai has a huge art scene, it’s a cultural center for the whole region.” Opera, independent cinema, contemporary art and a cool social scene are perhaps surprizing additions to Dubai, but are a symbol of the fast-spreading tolerance of the city authorities Case Study: A Truly Multicultural Society Diversity is crucial in an international city, say residents Jeroen Brons, business development manager at Shell in Dubai, relishes the huge diversity that he experiences in the city “Dubai is truly the most multicultural place, way beyond even Singapore,” he says “In work meetings with 20 people there are typically well over 10 different nationalities, both regional (from Lebanon, Iran, Saudi, Omani, Iraqi) and from further away (European countries, the U.S., and Asian nationals) They have their subcultures and neighbourhoods, but workwise it is extremely diverse.” Mr Brons applauds the efforts of Sheikh Mohammed bin Rashid Al Maktoum to promote entrepreneurship and support individual initiative “He is very visionary in this aspect, and also in creating the balance between the Muslim religion, culture and heritage on one side, and being open to Western cultures—including dress codes—on the other He is extremely energetic, always talking to entrepreneurs, corporations, institutes, etc.” david nicholson is a freelance writer specializing in business and finance Dubai’s new transport links, such as the Metro system, have helped to ease traffic congestion DUBAI DOES WELL IN CHALLENGING TIMES AND BOOM TIMES IT’S EVOLVED INTO AN INTERNATIONAL CITY There are Christian churches and a Sikh temple in Jebel Ali, theaters and libraries in the Mall of the Emirates, and a great profusion of sporting opportunities, from golf to triathlon to skiing The quality of life that’s available to residents in Dubai is “outstanding” according to Tony Goodwin, owner of a recruitment business in the city and a great fan of the way the city has modernized in recent years “It’s a 21st-century infrastructure phenomenon,” he exclaims “There’s low crime, services are extremely high quality, the food is excellent—pretty much everything is world-class.” From the ubiquitous air conditioning that makes the city’s interiors pleasant in summer, to the spotless retail malls and hotels that welcome hundreds of thousands of visitors every week, Dubai has become a watchword for exceptional quality and comfort For local residents, the cool and clean interiors are a pleasure; for northern European, Russian and many other visitors, guaranteed warmth is a welcome change from their homeland Living next to the ocean is a further bonus for many, with the corresponding ability to get to a beach within minutes Mr Goodwin believes that Dubai has modelled its development on another small but influential territory: Singapore “Except that Dubai hasoutdoneSingapore,” hesays.“It’sagreatexample of what moderate Islam can achieve It’s been incredible, and I think the example is spreading to Qatar and to Bahrain, where they’re developing higher standards of service and attracting tourists They look at Dubai as the gold standard and there’s an element of jealousy.” S8 | Tuesday, June 14, 2016 NY THE WALL STREET JOURNAL * * Special Advertising Feature EYE ON DUBAI GOVERNMENT’S TECH INNOVATION SET TO TRANSFORM GROWTH Government strategy to go paper-free will transform growth By Tim Phillips In May, His Highness Sheikh Mohammed The leapfrogging innovation represented bin Rashid Al Maktoum, UAE Vice President, Prime Minister and Ruler of Dubai, set the by DMCC is one reason that Dubai’s trade development has been singled out by the goal for Dubai’s e-government project: IMF as a “model for the region.” An IMF report Dubai’s government and government-related businesses were to go completely digital, published in 2014 (Economic Diversification in the GCC: Past, Present, and Future), 100% online, within two years “We will never comparing the economics of the major oil- tolerate any failure in achieving this goal,” he announced—aptly enough, in a tweet exporting nations in the Gulf region, highlighted Dubai’s business-friendly environment, The goal was simultaneously a challenge and a light regulations, modern infrastructure, and efficiency in project implementation blessing for Dubai Multi Commodities Centre DMCC The DMCC has made Dubai into the world’s “Starting with few natural resources, a small population, and limited infrastructure, the leading physical gold market, one of the world’s top three hubs for trading diamonds, and the UAE emirate of Dubai has seen remarkable growth and transformation of its economy,” the has become the world’s leading re-exporter of tea The free zone, business and residential report states community based in Jumeirah Lakes Towers This ability to innovate and deliver projects on employs 85,000 people Seven new member companies join the DMCC every working day time has boosted Dubai’s status as the trade hub for the region: during 2000–2013 real GDP grew on average 9% per year, according to the The growth has also made it essential to cut out paperwork At the time of the call to go all- IMF, compared with a GCC average of 5.6%, driven by export growth of 30% per annum digital in 2013, DMCC had already embarked on between 2000 and 2011 its own digitization project, simply because it was growing too fast for its administrative staff The Dubai Multi Commodities Centre free zone, business and residential community employs 85,000 people Across Dubai’s business districts, the “We have always been an innovation hub, but such as insurance, which meant that business between members was only million dirhams government’s 100% digital infrastructure has attracted a new set of regional entrepreneurs Typical is Mudassir Sheikha, a veteran of the message from His Highness gave us the extra impetus to ramp up the program,” says Gautam Sashittal, DMCC chief executive officer “We (US$272,000) per year Today, it is 20 times that “We have been able to offer them services like health insurance, banking services and simply would not have been able to grow to more than 12,000 member companies with the old system Just accommodating the much more, because we can see all our member companies in one place through our portal,” Mr Sashittal says to process all the applications volumes of people who would need to come into our service center every day in order to get done the business of registering a company, applying for a licence, and applying for visas for employees and family members was impossible.” The exponential growth in demand for its services was one reason why DMCC spent 10 months researching its report, launched Mar IT IS VERY PROGRESSIVE AND QUITE AMBITIOUS digital strategies Also, there is potential for regions that lag behind developed economies business in DMCC from any country The portal has also given the service sector in DMCC an unanticipated boost In 2013, members had could unlock a huge trade dividend in emerging markets: CEBR, an economic consultancy that partnered with DMCC, estimates that between 100 million and 350 million more to “leapfrog” by skipping the e-commerce stage and creating the infrastructure for more advanced forms of digital trade Partly as a result, the report predicts one third of global only a basic menu of value-added services, firms could become exporters by adopting trade will be “south-south” by 2025 Jewel in the Crown for Entrepreneurs From electric cars to micro-insurance, start-ups are thriving here “Can everybody enjoy a cat picture, regardless of their political or religious affiliation?” Alice Nam, the COO of Kasra asks It’s not a question that you hear often, but the answer will determine the growth of Kasra, a Dubai-based start-up that wants to be the first large-scale publisher of Arabic viral content “Between 7% and 8% of the world’s online population speaks Arabic, but only 1% to 3% of the content on the Internet is in Arabic,” Ms Nam explains, “and what there is in Arabic often reveals religious or political agendas Our goal is to create a place that appeals to people across all borders, to tap into our commonalities and shared experiences.” In its first year Kasra had million unique users and is now monetizing its content using native advertising Along the way, it has helped diminish some common stereotypes about the region: “We ran a quiz on which Although it is estimated that between 7% and 8% of Disney princess you are,” Ms Nam says, “14% the world’s online population speaks Arabic, only 1% to 3% of Internet content is in Arabic of the people who took it were Saudi men.” Kasra is one of 70 start-ups based in AstroLabs Dubai, the city state’s hottest start-up hub Inside, AstroLabs feels much like the hubs you’d find anywhere from New York to New Delhi: beanbags in the relaxation area, brightly-colored co-working spaces, glasswalled meeting rooms, and regular networking and mentoring It has attracted a diverse crowd with equally diverse start-up dreams For example, Michele Grosso left his job working for a large insurance company in 2015 to found Democrance with his own savings Now he is securing first-round funding so that Democrance can work with insurers and mobile operators to offer insurance to the 99% of the population in MENA that are uninsured “I noticed that the people who needed insurance the most did not have it, and so I thought ‘let’s something about it’,” he says He’s building the platform and processes so that insurance companies can provide micro-insurance: for health in North Africa, or life insurance in the Middle East Also in AstroLabs, Ben Pullen wants to popularize the electric car “At MyCars we are removing the pain of owning a car in Dubai by using an app to rent electric or hybrid cars by the hour So we’re also supporting the transition to a lower-carbon economy,” he says “I’m trying to promote electric cars in a region where petrol prices are among the lowest in the world: luckily, electric vehicle and battery technology is advancing at such a fast pace.” All three agree that Dubai is the best location in the region for an ambitious start-up to “make it happen,” as the slogan mounted on AstroLabs’ wall exhorts “The entrepreneurship scene is booming now and the location is attractive, so if you can’t find what you’re looking for here then people will be happy to come,” says Mr Grosso “The vision of the city has always been outwardly focused, to represent the Middle East on an international stage, and the attitude here is very refreshing,” Ms Nam adds “Dubai is the crown jewel of the region as a hub for entrepreneurs, so it’s a good moment for it to step up and compete with places like London, Singapore or Hong Kong.” OUR GOAL IS TO CREATE A PLACE THAT APPEALS TO PEOPLE ACROSS ALL BORDERS Tim PhilliPs is a freelance wriTer sPecializing in Technology and innovaTion service that now operates in 26 cities across MENA and Pakistan, and has grown 30% a month since 2012 “Dubai is moving in the direction that is fully aligned with our vision,” he says “There was even an announcement a couple weeks ago that Dubai has set a target—25% of the trips in 2016, called “The Future of Trade.” Research involved 150 experts in five continents and revealed that digitizing business processes Today, members can conduct their business through a dedicated portal and can set up a Silicon Valley start-ups who relocated to Dubai, and co-founder of Careem, a sharing economy-based chauffeur-cab booking the city will be in self-drive cars by 2025 It is very progressive and quite ambitious I don’t think we would have been able to build this kind of business anywhere else Many of us from the region left and did things in other parts of the world, and now Dubai has given us a reason to come back.”